Illness

• Taxpayers who were ill during the period in which the tax return was due are often able to have their penalties abated. Keep in mind that the IRS may request a doctor's note, hospital invoice or another type of verification to confirm the illness.
  
  

Disaster

• Taxpayers who experienced a natural disaster, such as a fire, hurricane or some other form of unavoidable casualty, may be eligible to remove penalties due to late filing.
  
  

Inaccessible Records

• Taxpayers who experienced a circumstance in which they were unable to access records necessary to complete their returns are eligible to claim reasonable cause. The IRS will need an explanation as to why the records were unavailable and the steps you took to retrieve the records.
  
  

Unavoidable Absence

• Taxpayers who were absent from the country or even incarcerated may be able to remove penalties based on reasonable cause as long as the taxes were attended to as soon as the taxpayer returned.
  
  

Bad Advice

• If a taxpayer's return is late because he relied on someone else's advice or counsel, he may qualify for a removal of penalty due to reasonable cause.