If you are young and sucessful you are not a good candidate for a compromise. If you have a reasonable cause for you prior non-compliance you might qualify for an abatement of penalties. See: http://mckenzielaw.com/2009/07/15/reducing-irs-penalties/ Robert E. McKenzie ARNSTEIN & LEHR LLP 120 South Riverside Plaza Suite 1200 Chicago, Illinois 60606-3910 Phone: 312.876.6927 | Fax: 312.876.7318 REMCKENZIE@arnstein.com