The penalties and interest that the IRS assesses on unpaid taxes can be severe. In some cases, it can be greater than the tax itself. Please note that it is very rare for the IRS to abate interest. For that to happen, you will have to prove that you acted on faulty advice given by the IRS, and that is very difficult to prove. So don't expect interest to be abated. In looking at assessed penalties and interest, the first thing I do is to make sure that the amount is calculated correctly. If not, then the issue is addressed to get it corrected. Given that it is correct, the IRS will consider abating the penalties only for reasonable cause. Reasonable cause, as defined by the IRS, depends upon all the facts and circumstances of each case, and, of course they say, each case is different. Some of the factors that they have considered reasonable are: unable to obtain records, sickness, family death, incorrect advice, acts of God and proper tax compliance in the past. If you owe back taxes and have significant penalties and interest due, contact me to see if you have grounds for penalty abatement.