Accountio / Templates / IRS notices / Reasonable cause letter

Reasonable cause letter for IRS penalty relief

Ask the IRS to remove a failure to file, failure to pay or failure to deposit penalty when something outside your client's control made them late. This reasonable cause letter is one Word letter with four ready paragraphs, sent under Form 2848.

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What the letter looks like

Reasonable cause letter template
What the letter sets outSection in the letter
The client, the return and the notice
✓
Taxpayer, Taxpayer ID, Tax form and period, NoticeOnly the last four digits of the SSN or EIN
The penalty and the code section
✓
Request for penalty relief for reasonable causeFailure to file or pay under IRC section 6651, or failure to deposit under section 6656, with the amount
Your authority to act
✓
Request for penalty relief for reasonable causeOpens by saying you represent the taxpayer under the enclosed Form 2848
Illness or death
✓
What happenedWho, the dates, and the due date it affected
Fire, flood or storm
✓
What happenedWhat was destroyed and when replacement records arrived
Records the client could not get
✓
What happenedThe document, who held it, and the dates it was asked for and received
A system failure
✓
What happenedThe filing or payment attempt, why it failed and when it was put right
Prompt compliance afterwards
✓
How the taxpayer put it rightThe date filed or paid, the days since the problem ended, and an optional line on a clean record
Removal of the penalty and its interest
✓
What we askWith a revised account statement to the client and to you
Evidence
✓
EnclosedForm 2848, the notice and records such as a doctor's letter with start and end dates

When to send it

The IRS gives relief for reasonable cause when a taxpayer used ordinary business care and prudence and still could not file, pay or deposit on time. Each request is judged on its own facts and circumstances. Send the letter when:

  • The client or a close family member was seriously ill, or died, around the due date
  • A fire, natural disaster or civil disturbance destroyed records or closed the business
  • The client could not get records needed for the return, despite asking for them
  • A system problem stopped an electronic filing or payment going through
  • The client does not qualify for first-time abatement

How to use the reasonable cause letter

  1. Call first. The IRS can remove some penalties on a call to the number on the notice. If relief can't be approved by phone, send the request in writing.
  2. Fill in the heading. The client, the last four digits of the taxpayer ID, the form and period, and the notice number and date.
  3. Keep one paragraph under What happened. Choose illness, disaster, missing records or system problem, delete the others, and give the dates it started and ended.
  4. Show the client put it right quickly. Give the date the return was filed or the tax paid, and how many days that was after the circumstances ended.
  5. Enclose the evidence. Form 2848, a copy of the notice, and records such as a doctor's letter with start and end dates or copies of letters asking for records. Log the date sent in the pack's notice tracker.

Questions

What is reasonable cause for IRS penalty abatement?

The taxpayer used ordinary business care and prudence but could not file, pay or deposit on time because of circumstances beyond their control. The IRS lists fires and natural disasters, inability to get records, death or serious illness of the taxpayer or immediate family, and system issues that delayed an electronic filing or payment.

How do I write a reasonable cause letter to the IRS?

Say what happened and when, how it stopped the client filing or paying on time, and what they did to file or pay. Name the penalty and the tax period, ask for the penalty and its interest to be removed, and enclose supporting documents.

What does not count as reasonable cause?

The IRS says reliance on a tax professional, lack of knowledge, mistakes and oversights, and lack of funds on its own do not generally qualify. Reasonable cause also does not apply to the estimated tax penalty.

Should I ask for first-time abatement or reasonable cause?

Check first-time abatement first. If you ask for reasonable cause on a call and the IRS finds the client qualifies for first-time abatement, it applies first-time abatement instead. Use this letter when the client does not qualify.

Is the interest removed too?

Yes. When the IRS reduces or removes a penalty, it reduces or removes the related interest automatically.

What if the client stayed late after the problem ended?

Reasonable cause does not hold if the client failed to comply within a reasonable time once the circumstances ended. That is why the letter states how many days after the problem ended the client filed or paid.

Also in the IRS notice and penalty relief pack

First-time abatement request letterNotice response lettersNotice tracker

See the whole pack →

Who it's for

CPA firms, enrolled agents and tax preparers who ask the IRS for penalty relief for individual and business clients.

Last checked

Checked against the IRS guidance on penalty relief due to reasonable cause and IRM 20.1.1.3 in November 2026.