What is reasonable cause for IRS failure to file?

A taxpayer may avoid the 26 U.S.C. § 6651(a)(1) failure-to-file penalty by showing that the late filing was due to reasonable cause and not willful neglect.[1][4] The core standard is whether the taxpayer exercised ordinary business care and prudence but was nevertheless unable to file on time.[1][2][5]

Governing Standard

Under 26 U.S.C. § 6651(a)(1), the IRS adds a penalty for failure to file a return on time unless the taxpayer proves reasonable cause and absence of willful neglect.[4] The Supreme Court has held that:

“reasonable cause” means the taxpayer exercised ordinary business care and prudence but was nevertheless unable to file the return within the prescribed time.[5]

“Willful neglect” means a conscious, intentional failure or reckless indifference.[5]

Common Grounds That May Qualify

The IRS states that reasonable cause is determined case by case, based on all facts and circumstances.[1][3] Examples of reasons that may support relief include:

• fires, natural disasters, or civil disturbances[3]
• inability to obtain records[3]
• death, serious illness, or unavoidable absence of the taxpayer or immediate family[3]
• system issues delaying electronic filing[3]

IRS guidance also notes that, depending on the facts, the following may be relevant:

• taxpayer’s education, experience, and prior compliance history[2][3]
• complexity of the tax issue[2]
• steps taken to comply once the problem was discovered[2][3]
• whether the taxpayer contacted the IRS for guidance[2]

Common Grounds That Usually Do Not Qualify

The IRS generally says these do not, by themselves, establish reasonable cause:

• ordinary forgetfulness or mistake[2]
• reliance on a tax advisor for the ministerial act of timely filing[2][5]
• lack of funds, absent unusual or unforeseen circumstances[1]
• prolonged noncompliance or continued failure to file, which can suggest willful neglect[1]

Reliance on an Accountant or Lawyer

This is a major limitation. In United States v. Boyle, 469 U.S. 241 (1985), the Supreme Court held that relying on an attorney to file a return does not constitute reasonable cause for a late filing.[5] The duty to ascertain and meet the filing deadline is the taxpayer’s and is generally nondelegable.[5]

That said, Boyle leaves room for situations where the taxpayer’s inability to comply was due to circumstances beyond the taxpayer’s control, as opposed to simple reliance on an agent.[5]

Practical Framework for Evaluating a Claim

The IRS typically asks:

How to Request Relief

The IRS says a taxpayer may request penalty relief by phone in some cases, or in writing on Form 843, Claim for Refund and Request for Abatement.[3] The taxpayer should explain the facts and provide supporting documentation.[3]

Bottom Line

For a failure-to-file penalty, the best reasonable-cause cases usually involve documented, extraordinary events beyond the taxpayer’s control and prompt corrective action once the obstacle is removed.[1][3][5] Mere reliance on a return preparer to file on time generally is not enough under United States v. Boyle, 469 U.S. 241 (1985).[5]