How may I apply for penalty cancellation due to reasonable cause?

How may I apply for penalty cancellation due to reasonable cause?

If we charge you a penalty but you believe you have reasonable cause for not complying with the tax laws, you may request a penalty cancellation.  Reasonable cause may exist when you show that you used prudence and good business care and were still unable to meet the requirements for filing your return and paying the amount owed on time. 

Some examples of reasonable cause are listed below:

• You or your tax practitioner were seriously ill.
• Your home or place of business was destroyed.
• You were not able to obtain necessary records.
• You had an unavoidable absence.
• You inadvertently mailed your state tax return and payment to the Internal Revenue Service (IRS).

If you believe reasonable cause existed, write to us at the address on the notice you receive and provide a detailed explanation of your current circumstances and any documentation that supports your position.

We will consider your request and will respond in writing.  If you have any questions, call us at the telephone number written on the notice.

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