Venar Ayar - Reasonable Cause For Penalty Abatement

The IRS may grant penalty relief for reasonable cause based on all the facts and circumstances of your situation. This broad category of penalty relief can cover many different types of accidents or unexpected circumstances.

Typical Reasonable Causes

The IRS lists the following events as “sound reasons” for failing to meet your tax obligations:

  • Fire, casualty, or natural disaster
  • Inability to obtain records
  • Death, serious illness, or incapacitation of the taxpayers or an immediate family member

If one of the situations caused you to miss a tax payment or filing deadline, you may have a good case for reasonable cause penalty abatement.

Other Potential Reasons

The IRS will consider any other reason that shows you used ordinary business care and prudence to follow the tax laws but were unable to do so. These cases usually involve some events that were out of your control, whether due to someone else’s fault or an accident.

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