"One of the most difficult of the many problems in tax collecting is to classify those who fail to fulfill the obligations imposed by law. The bureau is obliged to maintain a large staff and to use the utmost discretion in properly labeling these cases. Even handed justice is a heavy responsibility, and only through careful sifting can delinquents be classified.
"There are three distinct classes of delinquency with which we have to deal. First, the taxpayer who had reasonable cause, brought about by exceptional conditions beyond his control; secondly, the fellow who didn't look up or didn't realize his obligations; and thirdly, the person who wilfully evades compliance with the law.
"As for the man who shows a reasonable cause within certain lines established by the bureau, no penalties are asserted. All other delays are more carefully investigated before prosecution is begun. Many of these offenses are caused by ignorance and negligence. Failure to make the reports required by law may in some cases warrant severe penalty, as where the delinquent continues his delinquency after being warned of the penalty for failure to make return.
However, if the delinquent takes immediate corrective action, and it is clearly established through investigation that he did not wilfully violate the law, the bureau allows him to compromise his liability to specific penalty by tendering a nominal sum of money. In such instances the money is really in compromise but assessed to impress the taxpayer against future violations.
"But there is no relief, no compromise, for the man who wilfully evades wilfully neglects, or wilfully falsifies."  . 