Getting hit with IRS penalties can make your tax debt feel unmanageable. The good news? Many Charlotte taxpayers qualify for penalty abatement—but few ever ask.

At Polaris Tax & Accounting, we help individuals and small business owners throughout Charlotte reduce or eliminate IRS penalties through formal abatement requests.

Common IRS Penalties That Can Be Abated

If you live in Charlotte and owe the IRS, here are some penalties you might be facing:

  • Failure to File Penalty – Up to 25% of the unpaid tax

  • Failure to Pay Penalty – Also up to 25% over time

  • Estimated Tax Penalties – Common for self-employed taxpayers

  • Accuracy-Related Penalties – 20% of the underpayment in some cases

All of these can be challenged with the right documentation and strategy.

Who Qualifies for Penalty Abatement?

The IRS offers three main types of penalty relief:

1. First-Time Penalty Abatement (FTA)

For taxpayers who:

  • Filed all returns (or are filing them now)

  • Have paid or arranged to pay any taxes owed

  • Have a clean compliance history for the past 3 years

We use FTA often for clients in Charlotte who made a one-time mistake.

2. Reasonable Cause Abatement

Available if you were unable to comply due to:

  • Serious illness or death in the family

  • Natural disasters

  • Incorrect advice from a tax professional

  • Divorce, business failure, or mental health challenges

We’ve helped Charlotte clients get penalties waived with a detailed statement and supporting documentation.

3. Statutory or Administrative Relief

Less common, but sometimes available based on IRS internal guidance or legislative changes.

The Penalty Abatement Process in Charlotte

  1. We pull IRS transcripts to verify which penalties were assessed

  2. We prepare a penalty abatement request citing either FTA or reasonable cause

  3. We submit Form 843 or call IRS collections or appeals, depending on the case

  4. We follow up with the IRS to ensure proper processing and appeal if denied

Our team understands how to make the strongest possible case for our Charlotte-area clients.

Why Charlotte Residents Choose Polaris

Unlike unlicensed preparers, we’re federally licensed Enrolled Agents (EAs) with the authority to represent you before the IRS. We serve clients from NoDa to Steele Creek, Ballantyne to Plaza Midwood—and everywhere in between.

Don’t Pay More Than You Have To

📞 Call Polaris Tax & Accounting at 704-947-3178
✅ No judgment, just effective tax relief
🔗 Visit our Charlotte IRS Tax Help Page »

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