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    Difference Between Compromise and Abatement

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    Toni Ying
    Compromise and abatement are two remedies available to taxpayers under Section 204 of the Tax Code. Compromise involves paying a percentage of the tax liability, while abatement means cancelling the tax liability with no payment. A taxpayer can file for compromise if the tax liability's validity is doubtful or they cannot pay, and file for abatement if the assessment is unjust or excessive or if collection costs outweigh the amount due.

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    Difference Between Compromise and Abatement

    Uploaded by

    Toni Ying
    133 views3 pages
    Compromise and abatement are two remedies available to taxpayers under Section 204 of the Tax Code. Compromise involves paying a percentage of the tax liability, while abatement means cancelling the tax liability with no payment. A taxpayer can file for compromise if the tax liability's validity is doubtful or they cannot pay, and file for abatement if the assessment is unjust or excessive or if collection costs outweigh the amount due.

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    Difference between Compromise and Abatement

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    Compromise and abatement are two remedies available to taxpayers under Section 204 of the Tax Code. Compromise involves paying a percentage of the tax liability, while abatement means cancelling the tax liability with no payment. A taxpayer can file for compromise if the tax liability's validity is doubtful or they cannot pay, and file for abatement if the assessment is unjust or excessive or if collection costs outweigh the amount due.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    133 views3 pages

    Difference Between Compromise and Abatement

    Uploaded by

    Toni Ying
    Compromise and abatement are two remedies available to taxpayers under Section 204 of the Tax Code. Compromise involves paying a percentage of the tax liability, while abatement means cancelling the tax liability with no payment. A taxpayer can file for compromise if the tax liability's validity is doubtful or they cannot pay, and file for abatement if the assessment is unjust or excessive or if collection costs outweigh the amount due.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
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    Difference between

    Compromise and Abatement


    • SECTION 204 of the Tax Code provides
    two remedies to the taxpayer:
    compromise and abatement.

    • Compromise involves the payment of a


    certain percentage of the tax liability
    while abatement means cancellation so
    there will be no payment of the tax
    liability.
    A taxpayer may file for a compromise on the
    following grounds: a) doubtful validity; or b)
    financial incapacity. On the other hand, a
    taxpayer may file for abatement on the ground
    of: a) unjust or excessive assessment; or b) the
    cost of collection does not justify the collection
    of the amount due.

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