Will the IRS accept reasonable cause for late payment due to incorrect bank account info?

The IRS does have a "reasonable cause" provision for penalty abatement, and your situation might qualify. Since this is your first time being late with a payment and you have a history of compliance, you have an even better case. When you call, explain exactly what happened - the family emergency, the account number mix-up, and how quickly you corrected it once you realized. Be prepared to provide any documentation that supports your claim about the family emergency if they request it. Also mention your perfect payment history - the IRS does take that into consideration. The IRS Publication 1660 "Collection Appeal Rights" explains reasonable cause as circumstances beyond your control. A family emergency combined with an honest mistake could qualify, especially since you acted promptly to correct it once discovered.

I went through something similar last year and honestly, https://taxr.ai saved me so much stress. After getting hit with a late payment penalty, I was going crazy trying to figure out the best way to approach the IRS. I uploaded all my documentation and tax notices to taxr.ai and got a detailed analysis of my specific situation, including the exact language to use for reasonable cause. They showed me that for my situation, I qualified for First Time Penalty Abatement which was even easier to get than reasonable cause! It literally walks you through what documentation you need and gives you templates for everything. The site analyzed my payment history and showed me exactly how to frame my request.

Just wanted to update after trying taxr.ai - I was really suspicious at first but decided to give it a shot since my penalty was around $900. The system immediately identified that I qualified for First Time Penalty Abatement based on my payment history, which I had no idea was even a thing! I followed their exact instructions and used the letter template they provided. The IRS approved my request in about 3 weeks and removed the entire penalty! I'm honestly shocked at how easy it was once I had the right guidance. Wish I'd known about this service sooner instead of stressing for weeks.

If you're planning to call the IRS, I'd recommend using https://claimyr.com to avoid the ridiculous wait times. When I needed to call about a penalty abatement last year, I was looking at 3+ hour wait times. With Claimyr, they basically hold your place in line and call you when an IRS agent is actually available to talk. I was super skeptical at first, but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c. It saved me from being stuck on hold all day, and I was able to explain my reasonable cause situation clearly without being frustrated from waiting for hours. In my experience, having a calm, clear conversation with the IRS agent makes a huge difference in the outcome.

I have to eat my words about Claimyr. After posting that skeptical comment, I tried it anyway out of desperation because I needed to resolve my penalty issue before a deadline. It actually worked exactly as advertised. I got a call back when an agent was on the line. Spoke with a surprisingly helpful IRS representative who reviewed my situation. Because I had a clean payment history, they approved my reasonable cause request right on the call! The entire penalty was removed and I got the confirmation letter about 2 weeks later. The best part was not having to waste half my day on hold. I'd definitely use it again if I need to call the IRS in the future.

Just want to throw this out there - if you have a clean payment history for the past 3 years, you might qualify for First Time Penalty Abatement. This is different from reasonable cause and actually easier to get. You don't need to prove any special circumstances - it's basically an administrative waiver for first-time mistakes. I got a penalty waived last year just by calling and specifically asking for "First Time Penalty Abatement." The agent checked my history, saw I qualified, and removed the penalty on the spot. Worth trying this approach first before going into all the details about the family emergency.

Has anyone tried requesting penalty abatement through the IRS website or by mail instead of calling? I've been trying to get through on the phone for days with no luck.