Reasonable-cause penalty abatement letter (template)

Who it is for

An owner who filed or paid late because of a fire, a disaster, a serious illness or death in the family, lost records, or a system failure, and who does not qualify for First Time Abate or already used it.

When to use it

Use it once the notice shows the penalty and you can document what happened. The IRS decides reasonable cause case by case, so the letter is only as strong as the dates and records attached to it.

The deadline and form it relates to

• The IRS standard is that you exercised ordinary care and prudence and were nevertheless unable to file or pay on time (IRS — Penalty relief for reasonable cause).
• The examples the IRS gives include fires, natural disasters or civil disturbances, inability to get records, death or serious illness in the immediate family, and system issues that delayed an electronic filing or payment (IRS — Penalty relief for reasonable cause).
• Lack of funds, by itself, is not reasonable cause for failing to pay or deposit (IRS — Penalty relief for reasonable cause).
• If relief is not approved by phone, the IRS says to request it in writing with Form 843, Claim for Refund and Request for Abatement (IRS — Penalty relief for reasonable cause).

The template

Replace every [BRACKETED] field and delete any line that does not apply. Keep a copy of everything you send.

[DATE]

[IRS ADDRESS — copy it exactly from your notice]

Re: Request for penalty relief — reasonable cause
Taxpayer name: [BUSINESS OR INDIVIDUAL NAME, exactly as on the return]
Taxpayer identification number: [EIN or last four digits of SSN, as the notice shows it]
Tax form: [e.g. Form 1120-S, Form 1065, Form 941, Form 1040]
Tax period(s): [e.g. tax year 2024, or quarter ending 03/31/2025]
Notice or letter number: [e.g. CP14, CP2000, LT11 — top or bottom right corner] dated [NOTICE DATE]

To whom it may concern:

I am requesting removal of the [PENALTY NAME] of $[AMOUNT] assessed for [TAX PERIOD] because the late [filing / payment / deposit] was due to reasonable cause and not willful neglect.

What happened and when: [Describe the event in plain terms, with dates. Example: "On [DATE], a fire at [LOCATION] destroyed the business records needed to prepare the return."]

How it prevented timely filing or payment: [Explain the direct link between the event and the missed deadline. Example: "The return was due [DUE DATE]. Replacement bank statements did not arrive until [DATE]."]

What I did to comply: [List the steps taken and their dates. Example: "I requested replacement records on [DATE], filed the return on [DATE], and paid the balance on [DATE]."]

Before this period, [BUSINESS NAME] [describe the compliance history, e.g. "filed and paid on time for [NUMBER] years"].

The enclosed documents support these dates. Please remove the penalty and the related interest and confirm in writing.

Sincerely,

[SIGNATURE]
[PRINTED NAME], [TITLE — e.g. Owner, Managing Member, President]
[BUSINESS NAME]
[DAYTIME PHONE]

Enclosures: copy of the notice; [LIST EACH SUPPORTING DOCUMENT]

What to attach

• A copy of the notice that shows the penalty.
• Documents that fix the dates: hospital or court records, a doctor’s letter with start and end dates, disaster or insurance records, correspondence, receipts.
• Form 843, completed and signed, if you are making the request on the form rather than by letter.

Where to send it

• The IRS asks for documents such as hospital or court records, or a doctor’s letter with start and end dates (IRS — Penalty relief for reasonable cause).
• For a request that answers an IRS notice, the Form 843 instructions say to mail it to the return address from which the notice was sent (IRS — Instructions for Form 843 (12/2024)).
• Otherwise, a penalty request goes to the service center where you would file a current-year return for that tax (IRS — Instructions for Form 843 (12/2024)).

Official forms and pages

• Form 843 (PDF)