Overview

A reasonable-cause request asks the IRS to forgive penalties when you can show the failure to file, pay, or meet other tax obligations resulted from circumstances outside your control. The IRS evaluates requests case-by-case; success depends on the facts, the quality of documentation, and whether the taxpayer acted reasonably under the circumstances. This article explains the standards the IRS uses, the evidence that matters, how to submit a clear request, and practical tips from years of client work to improve outcomes.

Author’s note: In my 15+ years representing taxpayers, well-documented, concise requests win far more often than long, unfocused bundles of papers. A clear timeline, proof of the triggering event, and evidence of good-faith efforts to comply are the core of a successful case.

Sources: IRS Penalty Relief guidelines and related resources (see Resources section below) guide the IRS process and standards.

When should you consider a reasonable-cause request?

Use a reasonable-cause request when a penalty has already been assessed and you believe the noncompliance arose from:

  • Serious illness, hospitalization, or death in the family.
  • Natural disaster, fire, theft, or major casualty that disrupted recordkeeping or access to tax professionals.
  • Unavoidable absence or incarceration.
  • Reliance on an incompetent tax preparer or erroneous written advice from a tax professional or the IRS.
  • Other unforeseeable events beyond your control (e.g., postal service failures, active military service in a combat zone).

If you qualify for the IRS’s First-Time Abate (FTA) administrative waiver (generally for taxpayers with a clean penalty history for three prior years), that route can be faster and often requires less documentation. See FinHelp’s page on first-time penalty abatement for details: First-Time Penalty Abatement Relief.

How the IRS judges “reasonable cause”

The IRS focuses on three main questions:

  1. Was the cause outside the taxpayer’s control?
  2. Did the taxpayer exercise ordinary business care and prudence?
  3. Could the taxpayer have met the obligation if the event had not occurred?

The IRS looks for proximate cause between the qualifying event and the failure to file or pay. Mere financial inability to pay, without additional qualifying circumstances, rarely satisfies reasonable cause. However, inability to pay combined with a triggering event (e.g., medical emergency preventing filing) can support relief.

IRS guidance provides examples of acceptable reasons and explains that reasonable-cause determinations are fact-specific (see Resources).

Evidence that strengthens a reasonable-cause request

Quality of documentation matters more than quantity. Provide evidence that directly ties the event to the missed obligation and shows you acted reasonably given the circumstances.

Essential documents to collect:

  • Official records: hospital or medical records, police reports, death certificates, insurance claims, FEMA letters for disaster declarations.
  • Proof of reliance: engagement letters or emails from a tax preparer, canceled checks or receipts for professional services, or correspondence showing you contacted a tax professional.
  • Communications with the IRS: copies of notices, transcripts, or confirmation numbers for calls.
  • Financial records: bank statements, payroll records, or business ledgers showing when income stopped or expenses spiked.
  • Third-party corroboration: employer letters, landlord statements, or media reports for large-scale disasters.

For a deeper checklist on evidence, see FinHelp’s practical guide on preparing a penalty abatement request: Preparing a Penalty Abatement Request: What Evidence Helps.

How to prepare and submit your request

  1. Start with a short cover letter or statement that:
  • Identifies the taxpayer (name, SSN or EIN) and the IRS notice or penalty amount.
  • States the penalty type and the tax period(s) involved.
  • Gives a concise timeline (dates) of the triggering event(s) and when you were unable to comply.
  • Explains the specific action you’re requesting (abatement of X penalty for tax year Y).

  1. Attach supporting documents (see Evidence section). Organize by date and add brief captions explaining relevance.

  2. Complete forms when appropriate: the IRS accepts statements and written requests. Some taxpayers use Form 843, Claim for Refund and Request for Abatement, for certain penalty abatement or refund requests—however, Form 843 is not required for every reasonable-cause submission. Check IRS guidance or consult a tax professional to confirm which filing method fits your situation.

  3. Submit by the method specified on the penalty notice. If no instructions are given, mail to the address on the notice or fax where permitted. Some abatements can also be handled through IRS accounts or by calling the IRS.

  4. Keep a complete copy of your submission and proof of delivery. Follow up if you haven’t heard back within the timeframe noted in the notice.

Sample statement language (short, direct)

“I request abatement of the failure-to-file penalty for tax year XXXX. I was hospitalized from MM/DD/YYYY to MM/DD/YYYY for [condition]. Enclosed are hospital records and a letter from my physician. During that time I could not access my records or contact my preparer, and I acted promptly to file upon discharge. I respectfully request penalty relief based on reasonable cause.”

Include dates and attach the corroborating documents referenced.

Timeline and expectations

Processing times vary by office and complexity. Simple administrative requests (like some FTA requests) may resolve in weeks; reasonable-cause cases that require file review frequently take several months. If your case is escalated to Appeals or requires collection due process, expect additional months. If you are facing ongoing collection action or financial hardship, contact the Taxpayer Advocate Service for help (see Resources).

Common mistakes that undermine requests

  • Submitting vague, unsupported statements without dates or documentary proof.
  • Sending voluminous unrelated paperwork that buries the key evidence.
  • Failing to show a causal link between the event and the delinquency.
  • Assuming an inability to pay alone proves reasonable cause.
  • Waiting too long: file the abatement request promptly after learning of the penalty.

In my practice, I’ve seen denial letters where the only documentation was a brief note from the taxpayer. Conversely, concise timelines with supporting records often turn denials into approvals on reconsideration.

If your request is denied

You have options:

  • Request a supervisory review or reconsideration with additional evidence.
  • File an appeal with the IRS Office of Appeals (follow instructions on the denial letter).
  • If the denial results in collection activity causing economic hardship, contact the Taxpayer Advocate Service for case assistance.

Document every step and maintain copies of correspondence and delivery receipts. Appeal rights and procedures will be listed on the IRS denial notice.

Practical strategies and pro tips

  • Lead with a one-page chronology; judges and reviewers read thousands of pages—clarity is persuasive.
  • Highlight the most persuasive documents first (medical record summary, disaster declaration, preparer engagement letter).
  • Use source citations for public events (FEMA or local emergency declarations) to corroborate large-scale disruptions.
  • If relying on a tax preparer’s mistake, include the preparer’s name, contact information, engagement letter, and any corrective work performed.

Related FinHelp resources

Use these pages for deeper checklists and examples tailored to first-time relief and documentation best practices.

Professional disclaimer

This article is educational and reflects general guidance as of 2025. It does not replace individualized tax or legal advice. For case-specific recommendations, consult a qualified tax professional or attorney.