To avoid the penalty, the taxpayer must meet the burden of proof

that the failure to file (or to pay) was due to reasonable cause. IRM describes include the following:

 - A timely mailed return that is returned for insufficient postage

- Death or serious illness of the taxpayer or his or her immediate family

-Destruction of the taxpayer's residence, place of business, or records by fire or other casualty.

-Proper forms that were not furnished by the IRS

-Erroneous information obtained from IRS personnel

-A timely mailed return sent to the wrong IRS address.

-An unavoidable absence by the taxpayer.

-An unavoidable inability to obtain records necessary to compute the tax.

-Some other inability to obtain assistance from IRS personnel.

 

However, the penalty will not be excused for any of the following reasons:

-The taxpayer lacks the necessary funds with which to pay the tax.

-The taxpayer was hospitalized and suffered from an illness that was not incapacitating

-The taxpayer was incarcerated.

-The taxpayer allegedly was ignorant of the laws.