Thank you @RobertG. After looking back at the settlement paperwork, the SBOE did designate the principal monies owing as "Penalty". It would have been more accurately described as Unpaid Taxes since this was literally what it was. If I had this knowledge at the time of settling, I would have had them designate it as such in the settlement agreement so I could take advantage of the write off.
Thank you for your help. It is very much appreciated.
