How to Request Penalty Relief for Reasonable Cause: Evidence That Works

Overview

Penalty relief for reasonable cause helps taxpayers who missed filing, payment, or deposit deadlines because of events they could not control — for example, serious illness, natural disasters, or other significant hardships. The IRS evaluates each request on the facts and documentation you provide, and relief is granted when you demonstrate you exercised ordinary care and that the failure was unavoidable (IRS: Penalty Relief).

In my 15 years advising clients on tax problems, requests backed by chronological, contemporaneous documents (medical records, court papers, insurance claims, employer letters) succeed far more often than those relying on general statements or memory alone.

Useful IRS references

• IRS — Penalty Relief: https://www.irs.gov/penalty-relief
• IRS — Understanding Penalties: https://www.irs.gov/newsroom/understanding-penalties
• IRS Publication 556 (Examinations, Appeal Rights, and Claims for Refund): https://www.irs.gov/pub/irs-pdf/p556.pdf

What types of penalties can you request relief for?

The most common penalty types taxpayers seek relief for include:

• Failure-to-file penalties
• Failure-to-pay penalties
• Failure-to-deposit (payroll) penalties
• Accuracy-related penalties in certain circumstances

Each penalty type is evaluated on its own facts. For example, payroll deposit penalties for an employer may have different documentation needs than an individual who missed filing because of a hospitalization.

What evidence convinces the IRS (practical categories)

Provide evidence that links the circumstance to your inability to comply and shows you acted reasonably given the circumstances. Useful evidence categories:

1. Medical or health documentation

• Hospital admission and discharge records, operation reports, physician letters stating dates and limitations.
• Prescription records or rehabilitation timelines.

1. Official disaster or emergency documentation

• FEMA or state emergency declarations, local government notices, contractor or insurance damage estimates and photos.

1. Employment and income disruptions

• Termination notices, unemployment award letters, employer communications, proof of job search.

1. Legal or administrative barriers

• Court orders, incarceration records, probate filings that prevented access to records or funds.

1. Third-party confirmation and contemporaneous notes

• Letters from doctors, social workers, attorneys, employers, or clergy; dated journal entries; copies of emails showing attempts to comply.

1. Financial evidence of corrective action

• Bank records showing attempted payment or transfer, cancelled checks, or electronic payment confirmations (even if late) prove intent to comply.

How to structure your reasonable-cause request (step-by-step)

1. Read the IRS notice carefully

• Your IRS notice will usually give instructions on how to respond and list the penalties assessed. Follow those directions first.

1. Start with a clear cover letter

• Identify yourself (name, SSN or EIN), the tax year, IRS notice number, and exact penalties you want abated.

1. Tell the story chronologically and succinctly

• Use a short timeline that ties events to missed deadlines: dates of illness, hospitalization, disaster date, when you first tried to act, and when you cured the default.

1. Explain the efforts you made to comply

• List steps taken (contacting a tax preparer, attempting payment, arranging extensions) to show you exercised ordinary care.

1. Attach supporting documents

• Group evidence by date and annotate why each document matters. Highlight the specific pages or lines that substantiate your narrative.

1. State exactly what relief you seek

• Example: “I request abatement of the failure-to-file penalty for tax year 2023 under the reasonable-cause standard.”

1. Provide a phone number and email and sign the letter under penalty of perjury if attaching to a tax return or refund claim when appropriate.

Sample language (short template)

I, [Full Name], SSN [XXX-XX-XXXX], request abatement of the failure-to-file penalty assessed for tax year [YYYY], notice number [CPXXX]. On [date] I experienced [brief description: e.g., emergency surgery, hospitalization, house fire], which prevented me from timely filing and paying. I took the following steps to comply: [list]. Attached are medical records, hospital discharge papers, and dated correspondence showing attempts to engage tax help. Based on these facts, I request penalty relief under the IRS reasonable-cause standard.

(Adjust for your facts. Keep the letter focused and documentary-driven.)

Where and how to submit the request

• Respond to the IRS notice when it instructs you to send a written protest or documentation.
• If you are filing a late return and asking for abatement, include the reasonable-cause statement and attachments with the return.
• For some abatements (and certain refund claims) taxpayers use Form 843, Claim for Refund and Request for Abatement — but follow the IRS notice guidance or consult a tax professional before filing Form 843. See the IRS penalty relief overview for current procedures: https://www.irs.gov/penalty-relief

If you receive a denial, you can request a reconsideration, contact the IRS Appeals Office, or if the situation involves significant hardship or systemic IRS delays, contact the Taxpayer Advocate Service (TAS): https://www.taxpayeradvocate.irs.gov/.

For additional practical steps on appealing or building a case, see our guide on Resolving Tax Penalty Disputes Through Appeals or Abatement and Preparing a Penalty Abatement Request: What Evidence Helps.

• Penalty Abatement: How to Request Relief from IRS Penalties (internal): https://finhelp.io/glossary/penalty-abatement-how-to-request-relief-from-irs-penalties/
• Preparing a Penalty Abatement Request: What Evidence Helps (internal): https://finhelp.io/glossary/preparing-a-penalty-abatement-request-what-evidence-helps/
• How to Document Reasonable Cause for Penalty Relief (internal): https://finhelp.io/glossary/how-to-document-reasonable-cause-for-penalty-relief/

(Use the links above for templates, checklists, and examples tailored to different penalty types.)

Common mistakes and how to avoid them

• Submitting weak or late evidence: Demonstrate contemporaneous actions and show dated records — not only statements written long after the event.
• Overly emotional or vague explanations: Keep the facts clear and the timeline precise; emotions help context but are no substitute for documents.
• Ignoring notice instructions: Always respond according to the notice — wrong mailing addresses or wrong forms slow or void requests.

Timelines and expectations

There is no universal single deadline for requesting reasonable-cause relief; however, respond promptly once you learn of the penalty. For many notices you have a short window to appeal a determination, so read the notice and act quickly. Processing times vary; simple cases can be resolved in weeks, complex matters can take months. If you face financial hardship while the case is pending, contact the IRS Collection department or TAS for short-term relief options.

When professional help matters

A tax professional (CPA, EA, or tax attorney) can help you:

• Choose the right procedural path (written request vs. Form 843 vs. appeals)
• Draft a concise, evidence-forward narrative
• Organize and annotate supporting documents
• Communicate with the IRS and follow up on timelines

In my practice, cases that are organized with a short, document-referenced timeline are easier for IRS reviewers to evaluate — and win more often.

If the IRS denies your request

You can request reconsideration or file an appeal with the IRS Office of Appeals. If you believe the IRS process is causing economic hardship or there are systemic delays, contact the Taxpayer Advocate Service (TAS) for assistance. See our article on appealing penalty determinations for procedural detail: https://finhelp.io/glossary/resolving-tax-penalty-disputes-through-appeals-or-abatement/

Conclusion and quick checklist

Checklist before you submit:

• Read the IRS notice and follow its instructions.
• Prepare a one-page timeline tying evidence to missed deadlines.
• Collect contemporaneous documents (medical, disaster, employer, financial).
• Annotate each document with a short note explaining its relevance.
• Decide whether to send a written request with attachments, include the statement with a late return, or consult a tax professional.

This article is educational and general in nature. It does not substitute for personalized tax advice. For help tailored to your situation, consult a qualified tax professional or the Taxpayer Advocate Service.

Author note: I have 15 years advising individuals and small businesses on tax problem resolution and penalty relief strategies. My practical experience shows that the clearer and more contemporaneous the documentation, the higher the chance of IRS approval.