Stop guessing at reasonable cause language. Get a library of proven IRS penalty abatement letters for Form 990 late‑filing cases, plus a comprehensive PDF guide (updated for 2026) and video walkthrough for reference if you need it, so you can respond to IRS notices with confidence, in hours instead of days.
What I offer:
A collection of 19 letters based on almost two decades of experience helping organizations eliminate penalties ranging from a few thousand dollars to over $50,000. One penalty abatement pays for the cost of the letters MANY times over.
MY GUARANTEE: If you can't find language in my letters that helps you confidently write a customized reasonable cause letter to the IRS, just email me. I'll try to help you. If you still aren't sure, I'll refund your money.
Your are making a one-time payment, not a recurring charge.
I specialize in nonprofit tax compliance and have helped many organizations in every state of the USA obtain IRS penalty abatements (waivers), keeping over $3,750,000 out of the hands of the IRS and in the bank accounts of nonprofits.
Mistaken Belief #1
Over the last 20 years I've spoken with many nonprofit officers and advisors who feared their reason for missing a deadline did not qualify for penalty abatement.
Their reasons often included:
We simply made a mistake.
We didn't realize this requirement applied to us.
Our CPA missed the deadline.
We didn't know the return was incomplete.
We thought we DID file.
In many cases, those facts can support a successful reasonable-cause argument when they are explained clearly and supported properly.
The key is understanding how the IRS evaluates reasonable cause criteria and in presenting your situation in a clear, structured, and conforming way.
That is exactly what I provide you using my letter library, a PDF manual, and video instruction I also include a checklist to make sure you don't miss anything important.
Of course you don't have to read the manual or watch the videos. They are optional--there if you want them. A lot of people are busy and just go straight to the letter library.
Mistaken Belief #2
One of the most common questions I receive is:
"Do you have an example letter that exactly matches my situation?"
The answer is often "no," and that's not a barrier to success.
Every reasonable cause case is unique.
What the IRS cares about is not whether your situation matches someone else's exactly, but how clearly and persuasively your facts are presented and how they line up with what the IRS accepts.
My letters demonstrate:
How to identify facts that matter.
How to organize those facts.
How to structure a persuasive argument.
How to use language the IRS recognizes.
The letters I include show how these principles worked in real cases involving many different circumstances.
Once you understand the structure, adapting the approach to your own situation is much easier.
Remember, the IRS says that ANY reason will be considered. It's all in the way you structure your letter and how you present your facts.
"IRS accepted our reasonable cause for 4 missed filings and reinstated our tax-exempt status retroactively."
19 Successful Letters you can customize; Word Letter Template to get you started; Suggested Tax Compliance Policy; Final checklist to use before submitting your letter.
100+ page PDF manual that explains everything you need to know about getting penalty relief for nonprofit and tax-exempt organizations.
Two videos: "What is Reasonable Cause" and "Drafting Your Letter." You don't have to watch the videos, but they are here if you want to level-up.
Of course you don’t have to read the entire manual or watch all the videos…A lot of people are busy and just go straight to the letter library.
One payment includes one full year of access to the letter library, the penalty abatement manual and the videos.
You may renew after one year if you wish.
Developed over nearly 20 years working with nonprofit filings.
Based on real penalty abatement cases.
Includes the full text of all the successful letters you can customize for your situation.
Shows how the IRS evaluates reasonable cause.
Provides a structured process for organizing your facts and argument.
Learn everything you need to know to write a successful reasonable cause letter to the IRS to have penalties waived for the following situations:
Late-filing penalties for Form 990, 990-EZ, or 990-PF.
Reasonable Cause for Filing Form 1023 after the 27 month deadline.
Reasonable Cause for late 501(c)(4) notifications.
General approach to making reasonable cause requests for abatement for most any type of IRS penalty assessed against a nonprofit organization.
As far as I know, this is the only product of its kind dedicated to tax-exempt nonprofit organizations.
Note: All materials will be available to you in digital format. You will not receive a printed book or printed materials or CD or flash drive or any other physical media. You are purchasing access to this course and all included materials for a period of one year, including all updates during the year. You may renew when your access expires.
Until you've exhausted every effort to waive the penalties.
Before writing a check to the IRS--in fact, before you even pick up the phone to call them--read through my penalty manual. I show you step-by-step how to assess your situation, organize your facts, gather documentation, formulate your argument using the IRS code, regulations and other guidance, and finally I show you how to structure your letter.
SAVE MONEY, EARN MONEY
If you are a nonprofit board member, you can save hundreds of dollars in CPA fees by handling this yourself.
If you are a CPA, attorney, or similar professional advisor to nonprofits, learning the methods in this manual will be a great investment in yourself. Even if its your fault, this book will help. The skills and knowledge you learn from following my instruction and doing it yourself will give you a new skill that you can use in the future, not only with nonprofits, but with for-profits as well.
100+ pages of explanations, techniques, recommended language, laws, regulations, Internal Revenue Manual guidance, and example letters.
How the IRS calculates late filing penalties.
What the IRS says about penalty abatement.
What the Law says about penalty abatement.
What to do immediately when your organization receives a penalty notice from the IRS because the Form 990 was late.
What "reasonable cause" is.
"Mitigating factors" and how they can save you.
Learn about "events beyond the filer's control."
How to successfully blame your CPA or other professional.
How you can show that you acted in a responsible manner by using the IRS's own language.
Tips from the IRS Penalty Manual.
How, exactly, to analyze your situation, structure your letter and develop your argument.
What to do if you are a CPA, attorney, or other advisor and your actions caused or contributed to the late filing.
How to write a reasonable cause explanation to get retroactive reinstatement of tax-exempt status after being revoked for non-filing of three consecutive returns.
Other nonprofit penalties that can be removed (abated) for reasonable cause.
Checklist to use before mailing your letter (so you don't forget anything critical).
Suggested tax-compliance policy to be adopted.
IMPORTANT:
It's important for me to tell you that this isn't a book of "tricks" known only to me, or special magic secret tactics or any of that hype. I don't have any special connections inside the IRS. What I offer is simply an organized and effective approach, based on my more than 19 years of experience, using the provisions of the Internal Revenue Code and other written guidance from the IRS. It works.
My instructional materials will help you write a strong argument that will make it EASY for the IRS to see how your circumstances qualify for penalty abatement under the law (or retroactive reinstatement, if applicable). It helps to know how to speak the specialized IRS language that this material teaches you.
By using my letter library, you have a strong chance of getting the same results I and many of my customers have gotten. Below is the letter one of my penalty abatement clients received from the IRS after using my library and materials. Do you think the client was happy?
If your situation looks similar to one or more of the categories below, the letters will help you structure your reasonable cause argument and adapt the reasoning to your own facts.Use the letters as models and examples, not as word-for-word scripts. You must customize the language in the letters to fit your own facts.
IRS processing or mailing dispute.
Typical situation: The return was mailed on time, but the IRS treated it as late or claimed not to have received it.
Letters: Letter #1, Letter #3
Best fit when: You have certified mail proof, postal records, delivery confirmation, or other evidence that the filing was sent on time.
E-file, software, or transmission problem
Typical situation: A return or extension was delayed, rejected, or never transmitted because of software issues or filing-system problems.
Letters: Letter #3, Letter #4, Letter #7, Letter #8, Letter #10, Letters #13 and #14
Best fit when: The problem involved failed electronic filing, software glitches, rejected transmissions, or confusion between paper and electronic filing.
Paper filed when e-file was required
Typical situation: The organization filed a paper return when electronic filing was required.
Letters: Letters #13 and #14
Best fit when: The organization acted in good faith but used an outdated filing method that the IRS did not accept as valid.
Incomplete return
Typical situation: A return was filed, but it was missing a required schedule or attachment, so the IRS treated it as incomplete.
Letters: Letter #2, Letter #9, Letter #15
Best fit when: The filing was submitted, but Schedule A, Schedule B, or another required part was missing or incorrect.
Bookkeeping delays or incomplete records
Typical situation: The return could not be completed on time because records were delayed, incomplete, or still being reconstructed.
Letters: Letter #5, Letter #9
Best fit when: The organization had to finish catch-up bookkeeping or gather missing financial records before filing accurately.
CPA failed to file or transmit
Typical situation: The organization hired a CPA or outside preparer, but the return or extension was not filed on time.
Letters: Letter #4, Letter #6, Letter #7, Letter #8, Letter #10
Best fit when: The organization relied on a professional, acted in good faith, and later discovered that the filing was not actually completed.
Missed extension request
Typical situation: An extension was expected, prepared, or assumed, but it was not actually filed on time.
Letters: Letter #4, Letter #8, Letter #10
Best fit when: The organization or its CPA believed the extension process had been handled in the normal course, but the deadline was still missed.
Late discovery through another event
Typical situation: The organization believed it had complied, but the problem came to light later through an IRS notice, loan application, or other outside event.
Letters: Letter #6, Letters #13 and #14
Best fit when: The failure was not obvious at first and was discovered only because another process revealed it.
Volunteer staffing breakdown
Typical situation: A volunteer treasurer, officer, or bookkeeper was responsible for compliance, but turnover or overload caused the filing to be missed.
Letters: Letter #9, Letter #11, Letter #12, Letter #18, Letter #19
Best fit when: The organization was heavily volunteer-run and lacked stable administrative continuity.
Health or personal problems of the responsible person
Typical situation: The person responsible for preparing or filing the return had personal or health issues that interfered with timely compliance.
Letters: Letter #11
Best fit when: The responsible individual had previously been dependable, but temporary personal strain or illness disrupted the process.
All-volunteer organization did not know the requirement
Typical situation: The organization was run by volunteers and simply did not know about a filing requirement for multiple years.
Letters: Letter #12
Best fit when: Board turnover and lack of institutional knowledge contributed to missed filings and possible revocation of exempt status.
New organization or first filing
Typical situation: The organization was new and did not fully understand its filing requirements.
Letters: Letter #6, Letter #12, Letter #18, Letter #19
Best fit when: There was little or no prior filing history and the organization was inexperienced with nonprofit tax compliance.
Multi-year delinquency or cleanup
Typical situation: More than one year was late, incomplete, or mishandled before the problem was fully discovered and corrected.
Letters: Letter #6, Letter #9, Letter #12
Best fit when: The issue snowballed over time and the organization later had to correct multiple years at once.
Dissolution or short-year return
Typical situation: The organization dissolved, liquidated, or ended operations and missed the special short-year filing deadline.
Letters: Letter #5
Best fit when: The final return was due earlier than the organization expected because operations ended before the normal year-end.
Legal name change or filing identity confusion
Typical situation: The organization changed its legal name, and that change contributed to filing confusion or acceptance problems.
Letters: Letters #13 and #14
Best fit when: A return had to be refiled, traced, or explained because the organization’s filing identity changed.
COVID-related disruption
Typical situation: Pandemic-era disruption interfered with the organization’s normal filing and communication processes.
Letters: Letters #13 and #14
Best fit when: COVID materially disrupted staffing, workflow, mail handling, or the organization’s normal compliance routine. Could apply to any pandemic or outbreak.
Form 8976 filed late
Typical situation: The organization failed to file Form 8976 within the required deadline for a 501(c)(4) organization.
Letters: Letter #16, Letter #17, Letter #18, Letter #19
Best fit when: The organization did not understand the 60-day notice requirement or discovered the issue only after a penalty was assessed.
Confusion over exempt-status classification
Typical situation: The organization had uncertainty or internal confusion about whether it was a 501(c)(3), 501(c)(4), or another type of exempt organization.
Letters: Letter #16, Letter #17, Letter #19
Best fit when: Classification confusion contributed to the missed filing, late notice, or other compliance error.
Return filed before IRS notice
Typical situation: The organization corrected the late filing before the IRS notified it of the delinquency.
Letters: Letter #4, Letter #5, Letter #6, Letter #7
Best fit when: You want to show good faith, responsible action, and correction before formal IRS enforcement began.
One payment includes one full year of access to the letter library, the penalty abatement manual, and the videos, including all updates:
You may renew after one year if you wish.
Here are some unsolicited emails I've received from people who have purchased and used my Form 990 Penalty Abatement Manual or for whom I've written letters. These are all from real people. I know I should probably ask all my clients for testimonials, but I think it means more when I receive one without asking.
From a California CPA after purchasing my penalty manual:
"Your materials were so thorough, it reminded me of studying for the CPA [exam] with Becker!"
From a nonprofit organization on the West Coast for which I wrote a reasonable cause letter for penalty abatement:
"Hi David. We just received written notice from the IRS that [our organization's] 2015 Late Filing Abatement Process that you prepared and submitted for us was a success. The $3,740 Late Penalty has been dismissed and removed from our account. Thanks so much for your outstanding work. Let me know if you need a copy of the IRS notice for your file. Thanks Again, God Bless, D."
From a Nonprofit Treasurer for whom I wrote a reasonable cause statement for retroactive reinstatement of tax-exempt status:
"Hi David, just in.... a Christmas miracle! (Attached IRS Letter.)
Thank you so much for your help and encouragement through this whole ordeal. You had a difficult job helping me draft a letter asking the IRS to excuse 4 years of missed tax filings. In the end, the letter won the day, and the IRS graciously accepted and approved my request [for retroactive reinstatement]. Unbelievable. Thank you again! This is such a huge weight off of my shoulders, and a real lesson in life for me.
Sincerely and Merry Christmas." -- from J.K., a nonprofit Treasurer in California.
From a CPA who hired me to write an abatement request letter to the IRS:
"Dave, you did a great job putting that letter together. I have written them myself. I know it is more of an art form than a science, for sure. The all-important tone was excellent. You struck a good balance between the two extremes. I hope I don't need your services in the future, but if I do, I won't hesitate to contact you." --from D.H., a California CPA
From a CPA I helped:
"I used your services for an abatement letter on 990 late filing back in October. I just wanted to let you know that the penalty was 100% abated with a savings of $16,700. Thanks for your help with this."--from Matt, a CPA.
From an Enrolled Agent in Illinois:
"David McRee’s Form 990 Penalty Relief Manual for Do It Yourself Penalty Relief is well worth the money. I have used it successfully to achieve retroactive tax exempt status for a client in my practice. In particular the advise on writing the Reasonable Cause Letter is invaluable. Stop thinking about it and get the book today!" Ted Adams EA., Adams Tax Service, Granite City, IL 62040 618-791-8360.
From a California CPA:
"...I have 100% successfully used the Abatement Petition method 3 or 4 times, which served to abate more than $16,000 in proposed penalties against my nonprofit clients." --from Charles D., a California CPA.
From a CPA who purchased my materials:
"Your web site, materials and work on this topic is absolutely amazing and I am super impressed. It is far better than Thomson Reuters or any of the national resource services that I consulted. I found you through a Google search and I am very impressed with your work." --from Mike, a CPA
From a nonprofit client regarding a letter I wrote on the client's behalf requesting retroactive reinstatement of tax-exempt status:
"Hi David, I just finished reading the attachment, and what a brilliantly written letter! You laid the argument out perfectly and I understand now what you meant about establishing a timeline. This letter flows so much better [than the one our CPA wrote]. I can really see the time and effort that you put into writing this letter, and I feel that my money was well spent. Regardless of the outcome, I will know that my best effort was put forth. I thank you again for your advice and expertise and I am cautiously optimistic! ... " from T.S., Exec. Dir. of a health clinic.
Received from a West Virginia CPA:
"Dear David,
I was devastated when one of our nonprofit clients received a $30,000 late filing penalty. I did not know how to handle such penalties and did not know that they can be abated. With the help of your Form 990 Penalty Abatement e-book I was able to get the entire amount abated. This e-book is full of great and useful information for nonprofits. Due to the special circumstances of our case, our first abatement attempt was rejected by the IRS. We contacted you via email and with your help and guidance the second letter completely abated this huge $30,000 penalty. This book is for anybody who deals with IRS penalties as it has basic and detailed information that is necessary to be successful in removing penalties." ---from L.I., CPA, West Virginia.
From a professional advisor:
I purchased your publication titled “Form 990 Penalty Relief Manual” a few months ago, and with the help of your publication, we were able to get $46,600 in failure to file penalties waived! This entity was formed about 15 years ago and had never filed a 990. We filed the last three years, one on time and 2 late. This was the penalty on 2 years filed late. (The entity went over the $1mil revenue mark in the second late year, so the penalty max was higher.) Thanks for your guidance! ---from M.H., a professional advisor.
From a small nonprofit officer:
"Dear Mr. McRee,
When I nervously opened the IRS envelope today, I could not believe my eyes! In the amount owed box, this word appeared in capital letters: NONE!
We owe nothing! Thanks to you and your e-book, the IRS adjusted our penalty of $2156.95 to nothing!
Thank you for your clear, practical and accurate advice. I had previously written the IRS about the penalty.Their response was the penalty would stand. In researching what in the world to do in the face of their response and dreading the severe impact the loss of a large amount of money would have on our little non-profit charity, I came across your website and e-book. I wasn't too sure if a second letter to the IRS about the same penalty would do any good, but your encouragement gave me a little sliver of hope. I pieced together a letter based on your examples and verbiage and miracle of all miracles- it worked!
This was the best money I have spent in a long, long time and I highly recommend to others- do not hesitate; buy this book, follow the advice and I believe you will have a greater opportunity for a successful penalty abatement too.
Thank you again, Cindy."
From a nonprofit officer:
"The IRS dropped all $22,000 in fines! Thank you so much for writing this informative and well-written book, and thanks for all of your assistance with writing the penalty abatement request letter -- we could not have done it without you. You really know your stuff, and it's clear that you really care about helping non-profits. Thanks, David!" - Patrick, Austin TX
From a tax professional:
I purchased your book by downloading it. It is a great investment! I used it to draft a letter for my client who had received a penalty in the amount of $6,000 for not filing their 2007 990 on time. ...Well it worked. They received a waiver for the $6,000 penalty and they are thrilled. So this really helped them, and I am now the hero...Thank you so much for your invaluable help. Monica
From a nonprofit officer:
I am just following up with you on the outcome of the penalty abatement letter. We received a notice (CP210) abating all penalties! Thank you again for your guidance and assistance in reviewing my letter. Have a great day! Cindy
From a nonprofit treasurer:
Just wanted to let you know that you can add [our organization] to your list of satisfied customers who received abatement from the IRS. We just received two letters notifying us that both penalties have been waived. Can't tell you how much we appreciate your assistance with this. You were a huge life saver. From Mike K., Treasurer of a youth sports organization.
From a tax professional:
Thank you, thank you, thank you.
I received penalty abatements for both clients. Before reading your book, I was about to give up and just pay the penalties. The oversight that gave rise to the penalty was mine. There was no one else to blame. I couldn't even blame the stress of the tax season. Your book changed my outlook on the situation and provided me with everything I needed to write 2 effective penalty removal requests.
One last thank you for the personal advise and email response to my questions. Believe it or not, that alone was worth the price of the book. From Al.
From a nonprofit officer:
Just wanted to let you know I received two letters from the IRS today abating over $10,000 in penalties. Thanks for your help, the information I received to write the letter requesting the abatement was extremely valuable. Thanks again. From Mark in NY.
From a nonprofit officer:
" Mr. McRee, thanks to you and your treatise on Form 990 penalty abatement, I've been successful in getting $37,400 in penalties abated! I seem short on words, but it's a tremendous feeling opening up the letter from the IRS, searching for the Amount You Owe box and seeing NONE. Let's see $37,400 divided by the book's price is about a 1,000 time return on the cost of your book. It's a great service you've provided for charities like ours. Have a great day. I know I will." from John J.
From a Certified Public Accountant:
"Before I purchased your "IRS Form 990 Penalty Abatement" I wrote what I believed was a reasonable letter to have the penalty abated. It was rejected. I incorporated some of the language you spell out and it was abated. My client is very happy with the results and I am both very happy and impressed. This is my most cost effective purchase EVER! Thanks, Donald V., CPA NYC
From a nonprofit advisor:
First of all I want to thank you. I just talked to the IRS today and they have abated penalties for 2005 and 2006!!!!!!!!!! 2007 is under review and should also be abated. Your book was wonderful and really helped me with the correct language. It was the best $$$ our organization has ever spent.
Thank you very much for your advice. You have been very helpful to our organization. You really do provide a useful service to people who need it very much. I hope you understand what that means to organizations like us. From Steve, a professional advisor involved with a tax-exempt organization.
I guarantee that by using my materials, you will be able to write a much more effective reasonable cause letter to the IRS than you otherwise would have, and that it will take much of the time, frustration, and guesswork out of the process. If, after using my materials and writing your letter, you do not believe it helped you significantly and if you are not satisfied with your purchase, I will happily refund your money at your request.
What I DON'T GUARANTEE: I do not guarantee that the IRS will abate your penalties. I have no control of the IRS and I don't know the facts of your situation. Under no circumstances am I responsible for any penalties or interest you may have to pay.
David McRee, CPA has been helping nonprofit organizations apply for tax-exempt status, meet their government filing obligations, and get out of trouble with the IRS for over 27 years, and has been offering DIY instruction since 2007. As economic conditions have shifted in recent years, he has seen a tremendous increase in demand for training for those individuals wanting to "do-it-themselves" rather than hire a professional. He is committed to providing accurate, easy-to-understand instruction to nonprofit officers, directors, volunteers, CPA's and to other professional advisors serving nonprofits.
Florida CPA License #AC0031324.