If you owe the IRS, your tax bill may be just the beginning. Penalties for late filing, late payment, or payroll errors can double your balance quickly. Thankfully, there’s a way to reduce or eliminate these charges—through penalty abatement.

At Polaris Tax & Accounting, we help clients across North Carolina fight IRS penalties and secure relief through official programs.

What Is IRS Penalty Abatement?

Penalty abatement is the IRS’s formal process for forgiving certain tax penalties. The most common types eligible for relief include:

  • Failure to File (Form 1040 or business returns)
  • Failure to Pay (unpaid balances)
  • Failure to Deposit (usually for payroll tax issues)

You may still owe interest—but removing penalties can dramatically reduce your overall debt.

Two Main Paths to IRS Penalty Relief

1. First-Time Abatement (FTA)

The IRS grants a one-time penalty waiver for taxpayers who:

  • Have filed all required tax returns
  • Are current on any payments or have an installment agreement
  • Had no prior penalties in the last three years

This is often the fastest and most accessible type of relief.

Learn more in our blog: What is First-Time Abatement?

2. Reasonable Cause Relief

If you don’t qualify for FTA, you may still qualify if you had a legitimate reason for falling behind, such as:

  • Severe illness or family emergency
  • Natural disasters
  • Bookkeeping issues
  • Mistaken advice from a tax professional

You’ll need to document your situation and explain the circumstances clearly.

How Polaris Helps North Carolina Clients

  • Analyze IRS transcripts and penalty history
  • Draft compelling abatement requests based on IRS criteria
  • Support your claim with documentation and legal justification
  • Follow up with the IRS for approval or appeal

We work with clients from Charlotte to Raleigh to Asheville—and have successfully eliminated thousands in penalties.

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Final Thoughts

Penalties can be overwhelming—but they’re not always final. Let Polaris help you reduce the damage and get back on track with the IRS.