When you couldn’t file or pay on time because of circumstances beyond your control — and you otherwise exercised “ordinary business care and prudence” — the IRS can remove penalties for reasonable cause. Unlike First-Time Abatement, this is based on your story, and it requires documentation.
What counts as reasonable cause
Common accepted reasons (with proof):
- Serious illness, hospitalization, or death of you or an immediate family member.
- Natural disaster, fire, or casualty (a FEMA disaster declaration helps).
- Unavoidable absence, records destroyed, or an inability to obtain records.
- Incorrect written advice from the IRS that you reasonably relied on.
“I forgot,” “I couldn’t afford it,” or “my preparer messed up” are generally not enough on their own.
How to request it
You can send a letter (below) in response to the penalty notice, or file Form 843, Claim for Refund and Request for Abatement (often used if you already paid the penalty and want it refunded). Either way, attach proof.
The letter / Form 843 statement
[Your name]
[Address]
[City, State ZIP]
[Daytime phone]
[Date]
Internal Revenue Service
[Use the address on your penalty notice, or per Form 843 instructions]
Re: Request for penalty abatement for reasonable cause
[If paid: Form 843 enclosed]
Name: [Your name] SSN/ITIN: [xxx-xx-1234]
Tax year / form: [year / form] Notice date: [date]
Penalty: [type] - $[amount]
To whom it may concern:
I request abatement of the [penalty type] penalty of $[amount] for [year] based on
reasonable cause. I was unable to [file / pay] on time because of circumstances
beyond my control:
[Tell what happened, with dates: e.g. "On [date] I was hospitalized for [condition]
through [date] and was unable to manage my finances or file. I filed/paid as soon
as I was able, on [date]."]
I exercised ordinary care and prudence and acted as soon as the circumstances
allowed. Enclosed is documentation: [medical records / death certificate / FEMA
declaration / insurance or repair records / other].
Please abate the penalty and related interest, and confirm in writing.
Sincerely,
[Signature]
[Printed name]
How to send it
Respond by the date on the notice if there is one. Attach proof — a reasonable-cause request without documentation usually fails. Send certified mail and keep copies. If you already paid the penalty, use Form 843 to claim it back (note its separate filing deadlines).
Notes. If you qualify for First-Time Abatement, use that first (it’s automatic and saves your reasonable-cause story for other years). Interest on the tax itself is rarely abated unless it resulted from an IRS error/delay. General information, not tax advice — a tax pro can strengthen a reasonable-cause claim.