If you’ve been hit with an IRS penalty, you’re not alone—and you’re not without options. The IRS charges penalties for late filing, late payment, underpayment, and more. But if you meet certain conditions, you may qualify for penalty abatement that can reduce or remove those penalties.

At Polaris Tax & Accounting, we help Charlotte taxpayers fight back against unnecessary penalties and restore peace of mind.

Common IRS Penalties You Might Be Facing

Penalties can stack up fast. Here are the most common ones we help clients with:

  • Failure to File Penalty: 5% of the unpaid tax per month, up to 25%

  • Failure to Pay Penalty: 0.5% per month, also up to 25%

  • Estimated Tax Penalty: For underpaying quarterly estimated taxes

  • Accuracy-Related Penalty: 20% of the amount underreported

  • Information Return Penalties: For businesses or landlords who missed deadlines

If you’ve received IRS letters like CP14, CP504, or LT38, you may already be accruing penalties.

Types of IRS Penalty Relief Available

There are three main forms of penalty relief the IRS offers:

1. First-Time Penalty Abatement (FTA)

  • Available if you were compliant in the prior three years

  • Must have filed all returns and paid or arranged to pay any tax due

  • Can only be used once per taxpayer per return type

  • Most common and easiest to request

2. Reasonable Cause Penalty Relief

  • Requires showing that you had a legitimate reason for noncompliance

  • Examples: Illness, death in the family, fire, natural disaster, theft, or reliance on bad advice

  • Documentation and written explanation required

  • Reviewed case-by-case by an IRS agent

3. Statutory Exception

  • Rare cases where the IRS itself gave you incorrect written advice

  • Hard to obtain and typically applies only in narrow situations

How to Request IRS Penalty Abatement

Step 1: Get Your IRS Transcripts

We’ll pull your IRS account history to identify what penalties have been charged, when, and why.

Step 2: Determine Eligibility

We review your tax compliance history and facts to determine if FTA or Reasonable Cause applies.

Step 3: Submit the Request

We’ll file your penalty abatement request—verbally, in writing, or with Form 843 depending on the situation.

Step 4: Negotiate and Follow Up

If the request is denied or partially accepted, we can appeal or pursue alternative options like an Offer in Compromise.

Why Use Polaris for Penalty Relief?

  • We’re federally licensed Enrolled Agents, not just tax preparers

  • We understand how to communicate with the IRS on your behalf

  • We’ve saved clients thousands in penalties through accurate, timely advocacy

  • We help you fix the underlying issue so it doesn’t happen again

Whether you owe $1,000 or $100,000, IRS penalties can quickly make things worse. We’re here to stop the bleeding.

Don’t Pay the Penalty Until You Talk to Us

📞 Call Polaris Tax & Accounting at 704-947-3178
✅ Clear answers. Fast action.
🔗 Visit our Charlotte IRS Tax Help Page »

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