what does reasonable cause mean
IRS penalty abatement and âreasonable causeâ â what does that mean? âReasonable Causeââ¦could there be a more vague phrase? It makes sense than that this is the standard used by the IRS to determine whether a penalty should be forgiven or âabatedâ. It leaves some wiggle room. Ridding yourself of an IRS penalty is all about this vague âreasonable causeâ standard and the taxpayer has to be able to show âreasonable causeâ in order to have the penalty wiped away.