Reasonable Cause for Waiver of Penalty and Interest
To qualify for a waiver due to reasonable cause, you need to show that you exercised ordinary business care and prudence, but were still unable to file a tax return within a given time. We determine whether reasonable cause exists on a case-by-case basis. The law looks to the intervention of some condition, occurrence, or event which the taxpayer was in no position to reasonably anticipate. However, the requirements are construed in favor of collecting the penalty and interest. Forgetfulness or inadvertence do not qualify, nor does a lack of knowledge of the law or inability to pay a tax. Please see a complete description of the requirements and a few examples of instances that do and do not qualify as reasonable cause (ARM 42.3.105).
Last updated 1/23/2012 2:22:36 PM