Truthfully their are about 12 ways some good and some a little less than good. Let me give you some examples: If you could get rid of the penalties a lot of people could just pay the tax. That's what we would call abatement of penalties. The IRS will abate penalties for reasonable cause. Maybe you experienced one of these, Divorce, job loss, death of family members, mental or physical diseases, drug and alcohol problems, and many more. THESE ARE NOT REASONABLE CAUSE TO THE IRS. Bankruptcy is way to get rid of old tax debt, but is little less that a good solution. The Offer in Compromise allows you pay less than full amount, by negotiating the amount that you could reasonable pay. However, at tax professional could give some good advise on what would work for you.