Template from tincompliance.com. A written statement in response to IRS Notice 972CG requesting waiver of proposed penalties under IRC §6721/§6722 for missing or incorrect TINs, under IRC §6724(a) and Treas. Reg. §301.6724-1. Respond within 45 days of the notice date (60 if outside the U.S.). Publication 1586 (Rev. 8-2026) lists four required elements: the provision relied on, the facts (including that each solicitation was made in the time and manner required), the signature of the person required to file the return, and the perjury declaration. It also says not to submit copies of the TIN solicitations unless the IRS asks for them, so describe the solicitations and their dates in a schedule and keep the copies ready for a Letter 1948C. Not legal advice; have your adviser review. Delete the notes in gray italics before you send it.
[Company legal name]
EIN: [00-0000000]
[Address]
[Date]
Internal Revenue Service
[Address shown on Notice 972CG]
Re: Notice 972CG dated [notice date]; proposed penalty under IRC §6721 for tax year [year], Forms [1099-NEC / 1099-MISC / other]
Request for waiver of penalty for reasonable cause under IRC §6724(a)
Dear Sir or Madam:
[Company] respectfully requests that the penalties proposed in the above notice for information returns with missing or incorrect taxpayer identification numbers be waived because the failures were due to reasonable cause and not willful neglect, as provided in IRC §6724(a) and Treas. Reg. §301.6724-1. [If applicable: We agree to the penalties for the [number] returns identified as filed late and have enclosed payment / request that those items be assessed at the reduced tier for corrections filed within 30 days / by August 1.]
1. Summary of the failures
The notice proposes penalties on [number] returns for missing or incorrect name/TIN combinations. [Number] of these have since been corrected by [describe: corrected returns filed on date / payee provided corrected W-9]. [Number] relate to payees who did not respond to our solicitations.
2. The failures were due to events beyond our control
Under Treas. Reg. §301.6724-1(c)(6), a payee's failure to provide a correct TIN is an event beyond the filer's control where the filer acted in a responsible manner. In each case, the incorrect or missing TIN resulted from information furnished, or not furnished, by the payee.
3. We acted in a responsible manner: solicitations made
Treas. Reg. §301.6724-1(e) and (f) provide that a filer acts in a responsible manner with respect to missing and incorrect TINs by making the required solicitations in the time and manner the regulations require. [Company] made the following solicitations; the date and method of each, by payee, are listed in the enclosed schedule (Exhibit A). Copies of the solicitations themselves are retained and will be furnished on request:
- Initial solicitation: a Form W-9 was requested from each payee at account opening / before the first payment, as shown in the enclosed log.
- First annual solicitation: for accounts with a missing TIN, a further request was made by December 31 of the year the account was opened [or January 31 of the following year for December accounts].
- Second annual solicitation: for accounts still missing a TIN, a further request was made by December 31 of the following year.
- For incorrect TINs identified on IRS Notice CP2100/CP2100A dated [date], a First B-Notice [and Second B-Notice] with Form W-9 [or agency-validation instructions] was mailed to each listed payee on [date], within 15 business days of the notice, in envelopes marked "Important Tax Information Enclosed", and backup withholding was begun on [date] for payees who did not respond.
4. We acted in a responsible manner: before and after the failure
Before filing, [Company] [describe controls: verified name/TIN combinations through the IRS TIN Matching Program / a third-party matching service on (date); maintained written vendor-onboarding procedures requiring a signed W-9 before setup; etc.]. After receiving the IRS notice, [Company] corrected the returns within 30 days of discovery / issued B-Notices as described above, and has [describe process improvements].
5. Request
For the reasons above, [Company] requests that the proposed penalty of $[amount] for the [number] returns listed in Exhibit A be waived in full. [If applicable: We further request that the [number] returns corrected on [date] be assessed at the $60 / $130 tier applicable to corrections made within 30 days / by August 1.]
Enclosures: Exhibit A, schedule of solicitations by payee (date, method, response); Exhibit B, the notice listing, annotated to show accounts corrected before the notice date; [Exhibit C: corrected returns]. Copies of the solicitations are not enclosed, per Publication 1586, and are available on request.
Declaration
Under penalties of perjury, I declare that I have examined this statement, including accompanying documents, and to the best of my knowledge and belief it is true, correct and complete. I am the person required to file the returns described above [or: an officer authorized to sign for the filer].
______________________________
[Name], [Title]
[Company]
[Phone] · [Email]