US·UK Accountants

Glossary · Reporting

Reasonable Cause

A good-faith, non-willful explanation that can support penalty relief for late filings.

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By Sam H., Founder & Lead Advisor

ACCA · ACA · Reviewed by Katie M.

In more detail

Reasonable cause is the standard the IRS applies when deciding whether to abate penalties for a late or missed filing. It requires showing the failure was due to circumstances beyond the taxpayer control and that ordinary business care and prudence were exercised. A clear reasonable-cause statement is central to the Delinquent FBAR Submission Procedures.

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