What are the grounds for abatement?

• A. The tax or any portion thereof appears to be unjustly or excessively assessed, or the administration and collection costs do not justify the collection of the amount.
• B. The taxpayer requests abatement due to hardship
• C. The tax due is disputed on merits
• D. The tax amount is within tolerance and no abatement is possible

Answer: (A)

Abatement grounds focus on fairness and practicality in collecting taxes. It can be granted when the amount assessed is unjust or excessive, such as due to errors in calculation, misapplied exemptions, or wrong tax rates. It also covers situations where the costs of collecting the tax would be higher than the tax itself, making enforcement inefficient or impractical.

This is why the stated ground is the best answer: it directly captures two legitimate reasons for abatement—an unjust or excessive assessment and the idea that administrative and collection costs may not justify pursuing the amount owed.

Hardship alone, disputes on merits, or a tax amount that’s within tolerance don’t automatically justify abatement. Hardship might lead to other relief or payment arrangements, disputes on merits are typically resolved through appeals, and if the tax is small relative to the costs of collection, agencies may still decide not to abate.