An already high tax bill grows even higher. Ask for abatement of penalties. At anytime during the collection process, penalties are subject to cancellation on the basis of good faith, reasonable cause. Even if your tax bill is many years old and the penalties date back those several years, they are subject to cancellation when you can demonstrate facts showing your good faith. Always make every attempt to cancel penalties, especially on those bills that are aged.
Cancellation has a dramatic positive impact on cutting the bill.
The trauma of a tax audit is exacerbated by the fact that penalties are added to the bill. Demand that the penalties be excluded. Even if you owe the tax alleged in connection with an audit, the penalties must be excluded when you can prove good faith, reasonable cause. Before you sign off on any audit decision, review the report to see whether it includes penalties. If so, challenge the penalties by submitting a detailed abatement request to the auditor who conducted the examination.