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Published:   |   Last Updated: April 13, 2022

Letter 1277

Penalty Appeal Decision

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Letter Overview

If the IRS denies your claim for a refund or abatement of a penalty, you can protest or challenge it by requesting a conference with the IRS Independent Office of Appeals (Appeals). Appeals issues Letter 1277 to inform you that your request for penalty adjustment is either partially accepted or fully denied. Letter 1278 notifies you that your penalty abatement request has been accepted and your account will be adjusted as a result of the decision to abate the penalty. Letter 2682 is issued to inform you that your claim for refund of a tax and/or abatement of a penalty has been allowed in full.  

This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.

What does this mean to me?

You completed your protest and mailed it to the IRS address on the letter that explains your appeal rights.

How did I get here?

The Internal Revenue Service (IRS) received an income tax return using your name, Social Security number (SSN) or individual taxpayer identification number (ITIN).

What are my next steps?


Letter 1277

For Letter 1277, if you disagree with the decision from Appeals, you can further protest the matter by filing a suit as described in the letter.


Letter 1278 or 2682

For Letter 1278 or Letter 2682, you do not need to take any action, as the IRS will make the necessary adjustments to your account and send you a notice that explains the adjustments.


Customer Satisfaction Survey

Regardless which of the three letters you receive, at the conclusion of the Appeals process, an authorized vendor may contact you to perform an Appeals customer satisfaction survey. Your participation is voluntary, and the survey will not ask for personal or financial information of any kind.

Where can I get additional help?

If you still need help

The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.

Visit www.taxpayeradvocate.irs.gov or call 1-877-777-4778.

Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, see the LITC page on the TAS website or Publication 4134, Low Income Taxpayer Clinic List.

Related Letters and Forms

  • Letter 1363, Appeals Partial Disallowance of Refund Claim – Certified Letter;
  • Letter 1364, Appeals Full Disallowance of Refund Claim – Certified Letter;
  • Form 2297, Waiver of Statutory Notification of Claim Disallowance;
  • Letter 2681, Appeals Full Disallowance After Previous Claim Disallowance;
  • Letter 2683 Appeals Partial Disallowance After Previous Claim Disallowance;
  • Letter 905, Final Partial Claim Disallowance;
  • Letter 906, Final Full Claim Disallowance;
  • Letter 906-P, Letter 906-P Preparer Penalty Claim Disallowance Letter

Where am I in the tax system?

Penalty Appeal Decision, Letter 1277