Worksheets
Tool 7: Penalty Relief Evidence Checklist
Gather records for an IRS penalty-relief request with a checklist covering compliance history, reasonable cause and documents supporting your explanation.
Book by Justus D Eapen · The IRS Is Not the End of the World · professional review pendingThis page’s Source Notes and review status1 min read
Review status: book guide, pending professional review. This text has not yet been reviewed by an enrolled agent, CPA, or attorney. It is general education, not advice for your situation. Figures, forms, and thresholds change; verify them on IRS.gov.
First Time Abate:
- No failure-to-file, failure-to-pay, or failure-to-deposit penalty in the three prior years (estimated tax penalty does not count)
- All required returns filed
- Balance paid or in an approved arrangement
- I have identified the single year with the largest penalty to apply it to
- If the penalty is failure-to-pay and I can pay the year first, I have considered waiting so the full amount is abated
Reasonable cause (gather what applies):
- Death certificate or obituary for the taxpayer's immediate family member, with dates
- Hospital or physician records showing dates of serious illness or incapacity
- Insurance claim or official report for fire, casualty, or disaster
- Letters or emails showing diligent efforts to obtain missing records
- Written advice from the IRS that proved wrong, with date and employee ID
- Written advice from a tax professional on a substantive question, and proof you gave them complete information
- Proof the return was mailed on time (certified mail receipt) if the penalty is failure-to-file
- Prior-year return showing you met an estimated tax safe harbor
- Timeline showing when the obstacle began, when it ended, and when you complied
- A two-page letter: period, penalty, facts with dates, how they prevented compliance, what you did after, enclosures listed