If you’ve been hit with a large IRS penalty notice, you’re not alone — and you may not have to pay the full amount. Many Asheville taxpayers qualify for IRS penalty abatement, which can reduce or eliminate charges for late filing, late payment, or other compliance issues.

At Polaris Tax & Accounting, we specialize in helping clients in Western North Carolina navigate IRS penalty relief programs and avoid unnecessary debt and collection action.

What Types of IRS Penalties Can Be Abated?

You may be eligible to remove or reduce:

  • Failure to File Penalty – 5% per month up to 25%

  • Failure to Pay Penalty – 0.5% per month up to 25%

  • Estimated Tax Penalties

  • Accuracy-Related Penalties

  • Information Return Penalties (especially for small businesses)

Three Ways to Qualify for IRS Penalty Relief

  1. First-Time Penalty Abatement (FTA)
    If you’ve filed and paid on time in the past 3 years, you may qualify for a one-time waiver.

  2. Reasonable Cause Relief
    If something outside your control caused the issue — such as illness, disaster, or reliance on incorrect professional advice — you may qualify.

  3. Statutory or IRS Errors
    Sometimes the penalty is simply wrong. We help you challenge it with transcripts and support.

Common Situations Where Asheville Residents Qualify

  • Death or serious illness in the family

  • Natural disasters affecting your home or records

  • IRS-delayed processing of mailed payments or returns

  • Incorrect advice from a tax preparer

  • First-time lapse in filing due to business or life changes

  • COVID-related hardships

How Polaris Tax & Accounting Helps

✔ We analyze IRS transcripts to determine penalty accuracy and identify opportunities for relief
✔ We draft and submit abatement requests, with strong narrative and support
✔ We negotiate with IRS agents if further documentation is needed
✔ We monitor follow-up and verify relief is granted

What If the IRS Denies My Penalty Abatement Request?

We can request reconsideration or appeal the decision through the IRS Office of Appeals. We’ve helped many clients succeed on the second attempt with better documentation.

Serving Taxpayers Across Western North Carolina

We assist individuals and business owners in:

  • Asheville

  • Black Mountain

  • Hendersonville

  • Arden

  • Weaverville

  • Swannanoa

  • Fletcher and surrounding areas

Ready to Reduce Your IRS Penalties? Let’s Talk

Polaris Tax & Accounting is led by a federally licensed Enrolled Agent and has extensive experience in IRS relief procedures.

📞 704-947-3178
Schedule a consultation

Related Blog Posts