The IRS assesses penalties and interest as a deterrent to comply with the tax laws. Interest compounds daily and penalties can be as much as 50% of the taxes owed. However, penalties may be reduced or abated to zero. The IRS follows guidelines which may allow the abatement of penalties under certain circumstances. If something other than financial difficulty prevents you from paying your taxes, please let us know and we may be able to help with the abatement of penalties.