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Reasonable Cause
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1. Reasonable cause is based on all the facts and circumstances in each situation and allows the Service to provide relief from a penalty that would otherwise be assessed. Reasonable cause relief is generally granted when the taxpayer exercises ordinary business care and prudence in determining their tax obligations but is unable to comply with those obligations
.2. In the interest of equitable treatment of the taxpayer and effective tax administration, the nonassertion or abatement of civil penalties based on reasonable cause or other relief provisions provided in thhe Internal Revenue Manual must be made in a consistent manner and should conform with the considerations specified in the Internal Revenue Code (IRC), Regulations (Treas. Regs.), and Internal Revenue Policy Statements.
3. Reasonable cause relief is not available for all penalties; however, other exceptions may apply.
1. For those penalties where reasonable cause can be considered, any reason which establishes that the taxpayer exercised ordinary business care and prudence, but was unable to comply with a prescribed duty within the prescribed time, will be considered.
2. See IRM Exhibit 120.1.1-2, Penalty Relief-Application Chart. If a reasonable cause provision applies only to a specific Code section, that reasonable cause provision will be discussed in the IRM 120.1 chapter relating to that IRC section.
3. When considering the information provided in the following pages, remember that an
acceptable explanation is not limited to those given in IRM 120.1. Penalty relief granted
because the taxpayer provided an "other acceptable explanation" is identified by
use of PRC 30 on either the closing or adjustment document.
4. The wording used to describe reasonable cause provisions varies. Some IRC penalty
sections also require evidence that the taxpayer acted in good faith or that the
taxpayer's failure to comply with the law was not due to willful neglect. See specific IRM
sections for the rules that apply to a specific Code section.
5. Taxpayers have reasonable cause when their conduct justifies the nonassertion or
abatement of a penalty. Each case must be judged individually based on the facts and
circumstances at hand. Consider the following in conjunction with specific criteria
identified in the remainder of IRM 1.3.
o What happened and when did it happen?
o During the period of time the taxpayer was non-compliant, what facts and circumstances prevented the taxpayer from filing a return, paying a tax, or otherwise complying with the law?
o How did the facts and circumstances prevent the taxpayer from complying?
o How did the taxpayer handle the remainder of their affairs during this time?
o Once the facts and circumstances changed, what attempt did the taxpayer make to comply?
6. Reasonable cause does not exist if, after the facts and circumstances that explain
the taxpayer's noncompliant behavior cease to exist, the taxpayer fails to comply with the
tax obligation within a reasonable period of time.[IRM 120.1.1.3.1 ]
1. Any reason that establishes a taxpayer exercised ordinary business care and prudence
but was unable to comply with the tax law may be considered for penalty relief.
2. The following regulations contain examples of circumstances that may be helpful in
determining if a taxpayer has established reasonable cause:
o Accuracy-Related Penalty: 1.6664-4
- Failure to Pay Penalty: 301.6651-1(c)
- Failure to File: 301.6651-1(c)
- Failure to Deposit Penalty: 301.6656-1(b); 301.6656-2(c)
- Information Returns Penalty: 301.6723-1A(d); 301.6724-1
- Preparer/Promoter Penalties: 1.6694-2(d); 301.6707-1T.
3. The following Internal Revenue Service Policy Statements contain specific criteria
that may affect the imposition of penalties.
o P-2-4, Penalties and interest not asserted against Federal agencies.
- P-2-7, Reasonable cause for late filing of return or failure to deposit or pay tax when due.
- P-2-9, Timely mailed returns bearing foreign postmarks.
- P-2-11, Certain unsigned returns will be accepted for processing.
Ordinary Business Care and Prudence
1. Ordinary business care and prudence includes making provision for business
obligations to be met when reasonably foreseeable events occur. A taxpayer may establish
reasonable cause by providing facts and circumstances showing the taxpayer exercised
ordinary business care and prudence (taking that degree of care that a reasonably prudent
person would exercise), but nevertheless was unable to comply with the law.
2. In determining if the taxpayer exercised ordinary business care and prudence, review
available information including the following:
A. Taxpayer's Reason. The taxpayer's reason should address the penalty imposed. To show
reasonable cause, the dates and explanations should clearly correspond with events on
which the penalties are based. If the dates and explanations do not correspond to the
events on which the penalties are based, request additional information from the taxpayer
that may clarify the explanation (See IRM 120.1.1.3.1).
B. Compliance History. Check the preceding tax years (at least 2) for payment patterns
and the taxpayer's overall compliance history. The same penalty, previously assessed or
abated, may indicate that the taxpayer is not exercising ordinary business care. If this
is the taxpayer's first incident of noncompliant behavior, weigh this factor with other
reasons the taxpayer gives for reasonable cause, since a first time failure to comply does
not by itself establish reasonable cause.
C. Length of Time. Consider the length of time between the event cited as a reason for
the noncompliance and subsequent compliance. See IRM 120.1.1.3.1. Consider: (1) when the
act was required by law, (2) the period of time during which the taxpayer was unable to
comply with the law due to circumstances beyond the taxpayer's control, and (3) when the
taxpayer complied with the law.
D. Circumstances Beyond the Taxpayer's Control. Consider whether or not the taxpayer
could have anticipated the event that caused the noncompliance. Reasonable cause is
generally established when the taxpayer exercises ordinary business care and prudence but,
due to circumstances beyond the taxpayer's control, the taxpayer was unable to timely meet
the tax obligation. The taxpayer's obligation to meet the tax law requirements is ongoing.
Ordinary business care and prudence requires that the taxpayer continue to attempt to meet
the requirements, even though late.
3. Abatement of a penalty because the taxpayer established ordinary business care and prudence is identified by the use of Penalty Reason Code (PRC) 22 [IRM 120.1.1.3.1.2 ]
.
Ignorance of the Law
1. In some instances taxpayers may not be aware of specific obligations to file and/or pay taxes. The ordinary business care and prudence standard requires that taxpayers make reasonable efforts to determine their tax obligations. Reasonable cause may be established if the taxpayer shows ignorance of the law in conjunction with other facts and circumstances
.
2. For example, consider:
A. The taxpayer's education,
B. If the taxpayer has been subject to the tax,
C. If the taxpayer has been penalized, or
D. If there were recent changes in the tax forms or law which a taxpayer could not
reasonably be expected to know.
3. The level of complexity of a tax or compliance issue is another factor that should
be considered in evaluating reasonable cause because of ignorance of the law.
4. Reasonable cause should never be presumed, even in cases where ignorance of the law
is claimed.
5. The taxpayer may have reasonable cause for noncompliance if:
A. A reasonable and good faith effort was made to comply with the law, or
B. The taxpayer was unaware of a requirement and could not reasonably be expected to
know of the requirement.[IRM 120.1.1.3.1.2.1]
Mistake was Made
1. The taxpayer may try to establish reasonable cause by claiming that a mistake was made
.
A. Generally, this is not in keeping with the ordinary business care and prudence
standard and does not provide a basis for reasonable cause.
B. However, the reason for the mistake may be a supporting factor if additional facts
and circumstances support the determination that the taxpayer exercised ordinary business
care and prudence.[IRM 120.1.1.3.1.2.2 ]
Forgetfulness
1. The taxpayer may try to establish reasonable cause by claiming forgetfulness or an
oversight by the taxpayer or another party caused the noncompliance. Generally, this is
not in keeping with ordinary business care and prudence standard and does not provide a
basis for reasonable cause.
A. Relying on another person to perform a required act is generally not sufficient for
establishing reasonable cause.
B. It is the taxpayer's responsibility to file a timely and accurate return and to make
timely deposits or payments. This responsibility cannot be delegated.
2. Information to consider when evaluating a request for an abatement or non-assertion of a penalty based on a mistake or a claim of ignorance of the law includes, but is not limited to
:
o When and how the taxpayer became aware of the mistake.
- The extent to which the taxpayer corrected the mistake.
- The relationship between the taxpayer and the subordinate.
- If the taxpayer took timely steps to correct the failure after it was discovered.
- The supporting documentation.[IRM 120.1]..3.1.2.3]
Death, Serious Illness, or Unavoidable Absence
1. Death, serious illness or unavoidable absence of the taxpayer may establish
reasonable cause for late filing, payment, or deposit for the following:
A. An individual: If there was a death, serious illness, or unavoidable absence of the
taxpayer or a death or serious illness in the taxpayer's immediate family (i.e. spouse,
sibling, parents, grandparents, children). PRC 24 indicates the incident occurred to the
individual or a member of that individual's immediate family for filing, paying, or
depositing.
B. A corporation, estate, trust, etc.: If there was a death, serious illness, or other
unavoidable absence of the taxpayer (or a member of such taxpayer's immediate family), and
that taxpayer had sole authority to execute the return, make the deposit, or pay the tax
(person responsible). PRC 26 indicates the incident occurred to the person responsible
[for] filing, paying or depositing.
2. If someone, other than the taxpayer or the person responsible, is authorized to meet
the obligation, consider the reasons why that person did not meet the obligation when
evaluating the request for relief. In the case of a business, if only one person was
authorized, determine whether this was in keeping with ordinary business care and
prudence.
3. Information to consider when evaluating a request for penalty relief based on
reasonable cause due to death, serious illness, or unavoidable absence includes, but is
not limited to, the following:
1. The relationship of the taxpayer to the other parties involved.
2. The date of death.
3. The dates, duration, and severity of illness.
4. The dates and reasons for absence.
5. How the event prevented compliance.
6. If other business obligations were impaired, and
7. If tax duties were attended to promptly when the illness passed, or within a
reasonable period of time after a death or absence.[IRM 120.1.1.3.1.2.4]
Unable to Obtain Records
1. Explanations relating to the inability to obtain the necessary records may
constitute reasonable cause in some instances, but may not in others.
2. Consider the facts and circumstances relevant to each case and evaluate the request
for penalty relief.
3. If the taxpayer was unable to obtain records necessary to comply with a tax
obligation, the taxpayer may or may not be able to establish reasonable cause. Reasonable
cause may be established if the taxpayer exercised ordinary business care and prudence,
but due to circumstances beyond the taxpayer's control they were unable to comply.
4. Information to consider when evaluating such a request includes, but is not limited
to an explanation as to:
o Why the records were needed to comply.
- Why the records were unavailable and what steps were taken to secure the records
.
- When and how the taxpayer became aware that they did not have the necessary records.
- If other means were explored to secure needed information.
- Why the taxpayer did not estimate the information.
- If the taxpayer contacted the Service for instructions on what to do about missing
information.
- If the taxpayer promptly complied once the missing information was received; and
- Supporting documentation such as copies of letters written and responses received in
an effort to get the needed information.
5. Use PRC 25 if the taxpayer establishes reasonable cause because of an inability to
obtain the records necessary to comply with a tax or information filing requirement.[IRM
120.1.1.3.1.2.5]
Statutory Exceptions & Administrative Waivers
1. These two very separate categories are placed together because in many instances an
Administrative Waiver is an extension of rules that were provided for by statute.
1. Tax legislation (Internal Revenue Code (IRC)) may provide an exception to a penalty.
Specific statutory exceptions can be found in either the penalty-related IRC section or
the accompanying regulations. For example:
A. IRC section 6654(e)(1), (2), or (3), Estimated Tax Penalties for Individuals (IRM
120.1.3).
B. IRC section 7502(a) and 7502(e), Timely Mailing Treated as Timely Filing and Paying
(IRM 120.1.2).
C. IRC section 6724(a) or 6724(c), Waiver; Definitions and Special Rules, Information
Return Penalties (IRM 120.1.7).
D. IRC section 6404(f), Abatement of Penalty or Addition to Tax Attributable to Written
Advice of the Internal Revenue Service (see IRM 120.1.1).
E. IRC section 7508, Time for performing certain Acts Postponed by Reason of Service in
Combat Zone. This provision applies only in a Presidentially-declared "Combat
Zone."
2. Legislation with retroactive provisions may provide guidance on associated
penalties. As a result of that retroactive provision, the Service may issue a News Release
or other guidance with instructions for the disposition of the related penalties.
3. Some Statutory Exceptions are assigned their own Penalty Reason Code (see the
specific topic). However, many are not. Statutory Exceptions in general are identified by
the use of PRC 44. [IRM 120.1 1.3.2.1]
Administrative Waiver
1. The Service may formally interpret or clarify a provision to provide administrative
relief from a penalty that would otherwise be assessed. An administrative waiver may be
addressed in either a Policy Statement, News Release, or other formal communication
stating that the policy of the Service is to provide relief from a penalty under specific
conditions.
2. An administrative waiver may be necessary when there is a delay by the Service in:
A. Printing or mailing of forms
B. Publishing guidance, writing of regulations, or
C. Other conditions.
3. An example of an administrative waiver is Notice 93-22, 1993-1 C.B. 305. This
allowed individuals who requested an automatic 4-month extension of time to file an income
tax return, an extension of time without remitting the unpaid amount of any tax properly
estimated to be due.
4. An administrative waiver is identified by PRC 43 [IRM 120.1.1.3.2.2]
.
Undue Hardship
1. An undue hardship may support the granting of an extension of time for paying a tax
or deficiency. Treas. Reg. 1.6161-1(b), provides that an undue hardship must be more than
an inconvenience to the taxpayer. The taxpayer must show that they would sustain a
substantial financial loss if forced to pay a tax or deficiency on the due date.
2. The extension of time to pay does not provide the taxpayer with an extension of time to file. Nor does the extension of time to pay relieve the taxpayer of any appropriate penalties
.
3. Undue hardship generally does not affect a person's ability to file and therefore
would not provide a basis for penalty relief in a failure to file situation. However, each
request must be considered on a case-by-case basis. Undue hardship may establish
reasonable cause for failure to file on magnetic media, under Treas. Reg. 301.6724-1.
4. Undue hardship may also support relief from the addition to tax for failure to pay
tax if, the explanation for the noncompliance supports such a determination. However, the
mere inability to pay does not ordinarily provide the basis for granting penalty relief.
Under Treas. Reg. 301.6651-1(e), the taxpayer must also show that they exercised ordinary
business care and prudence in providing for the payment of the tax liability.
A. The taxpayer may claim that enough funds were on hand but, as a result of
unanticipated events, the taxpayer was unable to pay the taxes.
B. Consider an individual taxpayer's inability to pay a factor when considering penalty
relief if the taxpayer shows that, had the payment been made on the payment due date,
undue hardship (as defined in Treas. Reg. 1.6161-1(b)) would have resulted. In the case
where a taxpayer files bankruptcy, consider inability to pay a factor if the insolvency
occurred before the tax payment date.
5. If a payroll was met, taxes were withheld and should be available for deposit.
Employers must reserve money withheld from employees' wages in trust until deposited. The
employer should not use the money for any other purpose. Undue hardship does not support
relief from the IRC section 6672, Failure to Collect and Pay Over Tax, or attempt to Evade
or Defeat Tax (Trust Fund Recovery Program).
6. Information to consider when evaluating a request for penalty relief includes, but
is not limited to, the following:
o When did the taxpayer know they could not pay?
- Why was the taxpayer unable to pay?
- Did the taxpayer explore other means to secure the necessary funds?
- What did the taxpayer supply in the way of supporting documentation, such as copies
of bank statements?
- Did the taxpayer pay when the funds became available?
7. An abatement of a penalty because the taxpayer experienced a "undue
hardship" is identified by the use of PRC 29.[IRMK 120.1.1.3.2.3]
Advice
1. This section discusses three basic types of advice: written and/or oral advice
provided by the Service, and advice provided by a tax professional.
2. Information to consider when evaluating a request for abatement or nonassertion of a
penalty due to reliance or advice, includes, but is not limited to, the following:
A. Was the advice in response to a specific request and was the advice received related
to the facts contained in that request?
B. Did the taxpayer reasonably rely on the advice?
3. The following examples address situations where a taxpayer relies on written advice
from the Service regarding an item on a filed return.
A. The taxpayer did not reasonably rely on the advice regarding an item included on a
return if the advise was received after the date the return was filed;
B. A taxpayer may be considered to have reasonably relied on advice received after the
return was filed if they then filed an amended return that conformed with such written
advice;
C. A taxpayer may not be considered to have reasonably relied on written advice
unrelated to an item included on a return, such as advice on the payment of estimated
taxes, if the advice is received after the estimated tax payment was due.
4. Did the taxpayer provide the Service or the tax professional with adequate and
accurate information?
5. The taxpayer is entitled to penalty relief for the period during which they relied
on the advice. The period continues until the taxpayer is placed on notice that the advice
is no longer correct or no longer represents the Service's position.
6. The taxpayer is placed on notice as the result of any of the following events that
present a contrary position and occur after the issuance of the written advice:
A. Written correspondence from the Service that its advice is no longer correct or no
longer represents the Service's position;
B. Enactment of legislation or ratification of a tax treaty;
C. A U.S. Supreme Court decision;
D. The issuance of temporary or final regulations; or
E. the publication of a revenue ruling, revenue procedure, or other statement in the
Internal Revenue Bulletin.
7. Taxpayers should submit the necessary supporting information and documentation with Form 843, Claim. However, if the information provided demonstrates that abatement of the penalty is warranted, the penalty should be abated, whether or not a Form 843 is provided
. [IRM 120.1.1.3.2.4]
Written Advice from the Service
1. The Service is required by IRC section 6404(f) and Treas. Reg. 301.6404-3 to abate
any portion of any penalty attributable to erroneous written advice furnished by an
officer or employee of the Service acting in their official capacity.
2. If the taxpayer does not meet the criteria for penalty relief under IRC section
6404, the taxpayer may qualify for other penalty relief. For instance, taxpayers who fail
to meet all of the above criteria may still qualify for relief under reasonable cause if
the Service determines that the taxpayer exercised ordinary business care and prudence in
relying on the Service's written advice.
3. Penalties abated as a result of reliance on erroneously written advice from the
Service should be identified by PRC 44, Statutory Exception.[IRM 120.1.1.3.2.4.1]
Oral Advice from the Service
1. The Service may provide penalty relief based on a taxpayer's reliance on erroneous
oral advice from the Service. The Service is required by IRC section 6404(f) and Treas.
Reg. 301.6404-3 to abate any portion of any penalty attributable to erroneously written
advice furnished by an employee acting in their official capacity. Administratively, the
Service has extended this relief to include erroneous oral advice when appropriate.
2. In addition to considering the criteria provided in above, consider the following:
A. Did the taxpayer exercise ordinary business care and prudence in relying on that
advice?
B. Was there a clear relationship between the taxpayer's situation, the advice
provided, and the penalty assessed?
C. What is the taxpayer's prior tax history and prior experience with the tax
requirements?
D. Did the Service provide correct information by other means (such as tax forms and
publications)?
E. What type of supporting documentation is available?
3. The following are types of supporting documentation:
A. A notation of the taxpayer's question to the Service;
B. Documentation regarding the advice provided by the Service;
C. Information regarding the office and method by which the advice was obtained;
D. The date the advice was provided, and
E. The name of the employee who provided the information.
4. Penalties abated as the result of reliance on erroneous oral advice provided by the
Service should be identified by using PRC 31 in the fourth reason code position. [IRM
120.1.1.3.2.4.2]
Advice from a Tax Advisor
1. Reliance on the advice of a tax advisor generally relates to the reasonable cause
exception in IRC section 6664(c) for the accuracy-related penalty under IRC section 6662.
See IRM 120.1.5, Preparer Promoter Penalty, and Treas. Reg. 1.6664-4(c).
2. However, in very limited instances, reliance on the advice of a tax advisor may
apply to other penalties when the tax advisor provides advice on a substantive tax issue.
3. Example: The employer researched all available Service publications on the subject of contract labor, provided clear and convincing documentation as to the duties of the workers to the tax advisor, and requested an opinion from the tax advisor as to whether the workers were "contract labor" or employees. As a result, the tax advisor advised the employer that the workers were "contract labor" . However, the Service later determined that the workers were "employees" and not "contract labor" .
4. Reliance on the advice of a tax advisor is limited to issues generally considered
technical or complicated. The taxpayer's responsibility to file, pay or deposit taxes
cannot be excused by reliance on the advice of a tax advisor.[IRM 120.1.1.3.2.4.3]
Fire, Casualty, Natural Disaster, or Other Disturbance
1. Relief from a penalty may be requested if there was a failure to timely comply with
a requirement to file a return or pay a tax as the result of a fire, casualty, natural
disaster, or other disturbance.
2. Relief from a penalty because the taxpayer suffered from a fire, casualty, natural
disaster, or other disturbance should be identified by the use of the appropriate PRC. It
could be that as a result of the fire the taxpayer was unable to access their records (PRC
25) or as the result of an accident, the responsible party was hospitalized and unable to
file the return or pay the tax (PRC 24 or 26).
3. Fire, casualty, natural disaster, or other disturbance are factors to consider. One
of these circumstances by itself does not necessarily provide penalty relief.
4. Penalty relief may be appropriate if the taxpayer exercised ordinary business care
and prudence, but due to circumstances beyond the taxpayer's control they were unable to
comply with the law.
5. Factors to consider include:
o Timing.
- Effect on the taxpayer's business.
- Steps taken to attempt to comply.
- If the taxpayer complied when it became possible.
6. The determination to grant relief from each penalty must be based on the facts and
circumstances surrounding each individual case.[IRM 120.1.1.3.2.5]
Official Disaster Area
1. When a significant disaster occurs affecting a wide area of taxpayers, the Service
often issues special instructions to facilitate evaluating the request for penalty relief.
A. Because there are one-time instructions, they will not be incorporated in this IRM.
Districts, service centers, and customer service sites will be kept informed of any
special instructions affecting their areas.
B. Penalty Relief granted because the taxpayer was located in an Official Disaster Area is identified by the use of PRC 28.[IRM 120.1.1.3.2.6]
Service Error
1. A Service error can be any error made by the Service in computing or assessing tax,
crediting accounts, etc. See Exhibit 120.1.1-3, Penalty Reason Code Chart, for the
appropriate PRC to be used when abating either a computer-generated or manually-input
penalty.
2. General Service Error (computer generated--PRC 15). This PRC should be used to
identify penalties abated as the result of a Master File Recovery.
3. When an analyst, from any area of the Service, identifies a computer programming
application that caused a penalty to be assessed in error, that analyst should:
A. Contact Information Services (IS) to resolve the inadequate computer application ,
and
B. Include on the Request for Information Services (RIS) a statement indicating that
PRC 15 must be used to identify any abatement of a penalty resulting from reversal of the
computer application .
4. Other Service Error (manual input--PRC 45). This PRC should be used to identify penalties abated as the result of service errors that occur individually. Some examples are
:
A. A math error when manually computing a penalty,
B. An extension of time to file that did not post to the Master File, or
C. Any other error, when it can be shown that (a) the taxpayer did in fact comply with the law, and (b) the Service did not initially recognize that fact.[IRM 120.1.1.3.3]
(3) Each request must be evaluated on its own merit including:
(a) the events or parties involved, and
(b) if the taxpayer exercised ordinary business care and prudence, but due to circumstances or events beyond the taxpayer's control the taxpayer was unable to meet the tax requirement or if other penalty relief criteria apply.
(4) The taxpayer's obligation to meet the requirement is ongoing. Ordinary business care and prudence requires that the taxpayer continue to attempt to meet the requirements, even though late.
(5) Determine if the taxpayer's explanation addresses the penalty imposed.
(a) To show that the taxpayer is entitled to relief from the penalty, the dates and explanations should clearly correspond with events on which the penalties are based.
(b) If the dates and explanations do not correspond with the events on which the penalty are based, request additional information from the taxpayer to clarify the explanation.
(6) In determining whether or not the taxpayer exercised ordinary business care and prudence, review available Service information (see IRM (20)132.3).
(a) Check the preceding tax years (at least two) for payment patterns and the taxpayer's overall compliance history.
1 The same penalty, previously assessed, may indicate that the taxpayer is not exercising ordinary business care.
2 If this is the taxpayer's first incident of noncompliant behavior, weigh this factor with other reasons the taxpayer gives for relief, since a first time failure to comply does not by itself establish reasonable cause.
(7) Consider the length of time between the event cited as a reason for the non-compliance and subsequent compliance. The length of time between events may serve to cancel or reduce the event's effect. Penalty relief may not be appropriate if after considering all facts and circumstances the taxpayer fails to timely correct noncompliant behavior. For example:
(a) if the taxpayer claims that they were unable to comply with the filing requirement due to a death in the family,
1 that death occurred several months prior to the due date of the return, and
2 the return was not filed until a year after the due date of the return.
(b) Or the taxpayer claims that they were unable to comply with the filing requirement because the records necessary for filing were in the control of a third party, i.e., a bankruptcy trustee or an accountant,
1 the records were returned to the taxpayer well in advance of time the return was required to be filed, however,
2 the return was not filed until several months after the records were returned.
(c) In both of the examples, the timing of the event may prevent the taxpayer from receiving penalty relief unless other factors justify the delay in filing.
(8) Consider if the taxpayer could have anticipated the event that caused the non-compliance. See IRM (20)132.3.
