The first-time penalty abatement is the most commonly available type of waiver allowed by the IRS. If you have a good history of filing and paying taxes on time and you don’t have a record of penalties, you may be qualified for first-time penalty abatement where the IRS waives the penalty.
Offer in Compromise is a negotiation between the IRS and an individual who struggles to pay their tax liability in full or will experience financial hardship in doing so. This is also a legitimate method to settle tax delinquencies for a reduced amount. There are certain factors to consider such as income, ability to pay, and asset equity.
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