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Abatement of Penalties
Taxpayers have the right to request the abatement of some or all penalties - including late filing penalties, late payment penalties, failure to deposit or failure to make estimated payment penalties - based on "reasonable cause."

Compliance with the vague term "reasonable cause" usually requires showing that the late filing, late payment, or failure to make tax deposits or estimated payments was due to circumstances beyond the taxpayer's control. Examples might include illness or death of the taxpayer's accountant, destruction of records by a fire or flood, illness of the taxpayer or other significant events such as divorce, accident, or dissolution of a business.

In a business context, if a taxpayer can show he or she exercised ordinary business care and prudence, a penalty will generally be abated.

Abatement of Taxes
Abatement of some portion of your delinquent tax burden is possible. In a technical sense, however, the only way of achieving this solution is with an Offer in Compromise.

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