Reasonable Cause Penalty Abatement Estimator
Estimate potential savings if IRS penalties are removed due to reasonable cause. This tool helps business owners and tax professionals quickly approximate penalty totals and the possible abatement amount for late filing, payment, or deposit penalties.
Inputs
Choose the penalty type, enter the number of penalty periods (months or deposit periods), and the amount owed. Results are estimates and not IRS determinations.
About Penalty Abatement
Penalty abatement for reasonable cause is case\-specific. Common reasons include serious illness, natural disasters, or reliance on incorrect professional advice. Use this estimator as a starting point and gather documentation if you plan to request relief.
Next steps
- Collect evidence supporting reasonable cause (records, notices, correspondence).
- Consult a tax professional to prepare an abatement request or submit a written explanation to the IRS.
- File any delinquent returns or payments promptly to limit further penalties and interest.
Common questions
- What is reasonable cause penalty abatement?
- Reasonable cause abatement is relief from certain IRS penalties when taxpayers can demonstrate that late filing, payment, or deposits were due to circumstances beyond their control. Eligibility is determined case-by-case.
- Does this tool guarantee relief?
- No. This estimator shows a potential penalty amount and the savings if those penalties were fully abated. Actual relief requires IRS approval or professional representation.
- What documentation is typically required?
- Documentation varies but commonly includes evidence of illness, natural disaster, payroll vendor failure, or other events that prevented timely compliance.