Every state imposes penalties for the failure to file tax or information returns or to pay taxes within the time proscribed by statute. In most instances, however, a state will abate imposed penalties if the taxpayer can demonstrate reasonable cause for the noncompliance. With many states facing historical fiscal deficits and the need for additional revenues, the issue of tax penalties and the abatement of such penalties for reasonable cause have become increasingly relevant.

To read David Dorner's article, "Abatement of Penalties for Reasonable Cause: Best Practices," originally published in the Illinois State Bar Association's Tax Trends, please click the link above.