Which of the following is NOT considered a reasonable excuse for penalties?

A lack of funds to pay is not considered a reasonable excuse for penalties because it reflects a taxpayer's financial situation rather than an unforeseen circumstance or an inability to comply with tax regulations. Tax obligations are expected to be met regardless of an individual's financial status. Tax authorities typically hold taxpayers responsible for filing and paying taxes on time, regardless of whether they can afford to do so.

In contrast, situations like computer failure, unexpected hospital stays, and incidents such as fire or theft involve unexpected, unavoidable circumstances that could impede a taxpayer's ability to meet their tax obligations. These kinds of events demonstrate that the taxpayer encountered unplanned challenges that hindered their compliance, allowing for consideration of penalties to be waived or reduced under such circumstances.