Quick Answer:
IRS penalty abatement is a process that can reduce or remove tax penalties if you have a valid reason for late filing or payment. Common grounds include reasonable cause, first-time penalty abatement, or IRS errors.

Why the IRS Charges Penalties

Penalties are added when you file or pay your taxes late, fail to make estimated tax payments, or submit inaccurate information. Over time, interest can make these penalties grow quickly, turning a manageable balance into a serious financial burden.

Types of Penalties That May Be Abated

  • Failure to File – Not submitting your return by the deadline.

  • Failure to Pay – Missing the tax payment due date.

  • Failure to Deposit – For employers who don’t deposit payroll taxes on time.

  • Accuracy-Related Penalties – Caused by substantial understatements or negligence.

Common Grounds for Penalty Abatement

  1. Reasonable Cause – Illness, natural disasters, serious family emergencies, or circumstances beyond your control.

  2. First-Time Penalty Abatement (FTA) – If you have a clean compliance history for the past three years.

  3. IRS Error – If the penalty was assessed incorrectly.

How to Request IRS Penalty Abatement in Lake Norman

  • Step 1: Identify which penalties were assessed.

  • Step 2: Gather documentation supporting your request.

  • Step 3: Submit your request in writing, by phone, or through your IRS online account.

  • Step 4: Follow up with the IRS until a determination is made.

How Polaris Tax & Accounting Helps

  • We determine if you qualify for penalty relief.

  • We prepare and submit a strong abatement request.

  • We represent you in all IRS communications, so you don’t have to.

  • We combine abatement with other tax resolution strategies to reduce your total balance.

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Don’t let IRS penalties drain your bank account. Contact Polaris Tax & Accounting today to see if you qualify for penalty abatement and get expert representation from a licensed IRS professional.