How do you remove penalties and interest on taxes owed?

In order to remove penalties and interest on taxes owed you must do two things.

First, for penalty abatement you must submit a request to the IRS requesting that the penalties be abated due to mitigating circumstances beyond your control which prevented you from paying your tax in full, on time. Plus you have to be able to prove your explanation. IRS is very unforgiving in these matters and it takes a good story to get them to respond.

Second, for interest abatement you must submit a request to the IRS proving that the amount of interest charged against you has been a result of their own mistake in handling your account. IRS is very reluctant to ever admit that they make mistakes, so this has to be clear, convincing proof beyond a doubt.