Quick overview

Reasonable cause is the IRS standard used when a taxpayer seeks abatement (removal) of late-filing penalties because they could not meet the filing deadline due to circumstances beyond their control. The IRS evaluates each request case-by-case, looking for credible evidence that the taxpayer acted responsibly and that the late filing was unavoidable. (See IRS guidance on penalty relief and reasonable cause: https://www.irs.gov/penalties/penalty-relief-and-reasonable-cause.)

How the IRS evaluates reasonable cause

The IRS does not maintain a fixed checklist; instead it weighs facts and circumstances. Common factors the IRS considers include:

  • Serious illness, injury, or death of the taxpayer or immediate family member that prevented filing or obtaining records.
  • Natural disasters, fires, or other casualty events that destroyed records or prevented access to work or documents.
  • Unavoidable absence (for example, hospitalization or mandatory evacuation during a declared emergency).
  • Erroneous professional advice or reliance on a tax preparer whose incorrect guidance you reasonably relied upon.
  • Inability to obtain necessary records despite reasonable efforts (banking, payroll, or institutional delays).
  • Postal or delivery failures that prevented timely filing when mailing was the only reasonable option.

The IRS also looks for evidence you acted in good faith: you filed as soon as the obstacle ended, you cooperated with tax authorities, and you maintained records showing effort to comply.

Source: IRS Penalty Relief and Reasonable Cause page (2025) — https://www.irs.gov/penalties/penalty-relief-and-reasonable-cause

What DOESN’T usually qualify

  • Ordinary forgetfulness or being busy with work or family, without extraordinary circumstances.
  • Financial inability to pay (a separate penalty applies for late payment; inability to pay is not by itself reasonable cause for late filing). For late-payment penalties there are different relief options.
  • Carelessness or negligence. The IRS expects taxpayers to make reasonable efforts to meet filing obligations.

Practical documentation that strengthens a reasonable cause claim

When you request penalty relief, the stronger your documentation, the better. Typical supporting items include:

  • Medical records, hospital discharge summaries, or physician statements showing dates of incapacitation.
  • Death certificates and documentation of estate or funeral dates.
  • Police or fire reports and insurance claims showing damage from disasters.
  • Evacuation or disaster declarations from FEMA or state emergency management.
  • Written communication from tax preparers or advisors showing erroneous advice, plus records of attempts to correct the error.
  • Bank statements, employer pay stubs, or institution letters proving you tried but could not get necessary information.
  • Postmarked envelopes, delivery-tracking records, or vendor shipping logs that show mailing/delivery failures.

Tip from my practice: Collect evidence at the time of the event. I’ve seen otherwise-valid claims fail because the taxpayer waited months and key documents were lost or incomplete.

How to present a reasonable cause request (step-by-step)

  1. File the late return immediately. The IRS is much more likely to consider relief when you have filed and paid any tax you can.
  2. Gather documentation that directly ties to the dates you missed and explains why filing was impossible or unreasonable.
  3. Write a concise reasonable cause letter explaining the events, the dates, and steps you took to comply once the obstacle ended. Be factual and avoid emotional language.
  4. Attach supporting documents and keep copies for your records.
  5. Submit the request following IRS or notice instructions. If you received a penalty notice, follow the appeal or abatement instructions on the notice. If not, you can include the letter with the filed return or contact the IRS as outlined on their penalty-relief page.

Useful internal guides on our site:

Examples that typically work (and why)

  • Hospitalization: A taxpayer hospitalized for two weeks just before the tax deadline who provides hospital records and a letter from the attending physician. This usually shows they could not access records or prepare a return and that they acted reasonably.

  • Natural disaster: A homeowner evacuated for a hurricane and lost tax records in the storm. FEMA declarations, insurance claims, and photographs of damage support the claim.

  • Reliance on tax professional: A client gave complete records to a preparer who then gave incorrect advice about filing deadlines. Written communications, a contract or engagement letter, and proof you provided the preparer with complete information strengthen the argument. Note: the IRS evaluates whether reliance was reasonable.

Examples that rarely work

  • “I was too busy with work and family.” Without an extraordinary, verifiable event this is not sufficient.
  • “I couldn’t afford a preparer.” Financial hardship alone does not meet reasonable cause for late filing (unless it ties to a qualifying reason such as hospitalization or disaster).

Timelines and what to expect from the IRS

  • There is no fixed IRS timeline for all requests. After submission, simple requests can be resolved in a few weeks; complex cases may take several months. The IRS processes many abatement requests during filing season and response times vary.
  • If the IRS denies your request, you may be able to appeal through the office noted on your letter or request a Collection Due Process hearing when collection actions begin.

Authoritative reference: IRS Penalty Relief (Reasonable Cause) — https://www.irs.gov/penalties/penalty-relief-and-reasonable-cause

Best practices and professional strategies

  • File returns late rather than not filing at all. Filing demonstrates intent to comply and reduces some penalties.
  • Keep digital copies of receipts, emails, and documents so you can assemble a record quickly.
  • If you rely on a tax preparer, use a written engagement letter that documents responsibilities and timelines. In disputes, written proof helps your case.
  • Consider first-time abatement if you have a clean compliance history (first-time abatement is an administrative waiver the IRS offers for qualifying taxpayers). See our guide: Penalty Relief Options: Reasonable Cause, First-Time Abatement, and More (https://finhelp.io/glossary/penalty-relief-options-reasonable-cause-first-time-abatement-and-more/).

In my practice, combining a clear chronology with contemporaneous documents and timely filing often turns a marginal case into an approvable one.

Common mistakes to avoid

  • Waiting to request relief until after a levy or significant collection action has begun.
  • Providing vague or untimed statements without supporting records.
  • Submitting conflicting information—consistency matters.

Sample outline for a reasonable cause letter (brief)

  • Heading: taxpayer name, SSN or EIN, tax year at issue.
  • One-paragraph timeline of events with dates.
  • One-paragraph explanation of why those events made timely filing impossible.
  • List of attached documents.
  • Statement that you filed the return as soon as practicable and cooperated with the IRS.

When to get professional help

If penalties are large, facts are complex (multiple years, business interruption), or the IRS denies an informal request, consult a CPA, EA, or tax attorney. Representation can improve outcomes—professionals know filing addresses, submission routing, and how to frame facts persuasively.

FAQs (short answers)

  • Can I get penalties removed for both late filing and late payment? Yes, but reasonable cause for late filing is judged separately from late-payment penalties. Other relief programs (like first-time abatement) may apply to either or both.
  • Will paying the tax owed improve my chances? Yes. Paying tax owed or entering into a payment arrangement shows good faith and often improves the chance of abatement for filing penalties.
  • Is a preparerfully responsible if they missed the deadline? Not automatically. The IRS examines whether you reasonably relied on the preparer and whether you provided complete records.

Disclaimer

This article is educational and based on IRS guidance and professional experience through 2025. It does not substitute for personalized tax advice. For advice specific to your situation, consult a qualified tax professional.

Sources and further reading