Penalty Abatement in Plantation, FL — Reduce IRS Back Tax Balances

IRS penalties for late filing and late payment can double your back taxes if left unchecked. Plantation, FL taxpayers may qualify for penalty abatement—either through First-Time Abatement or by proving reasonable cause. Here’s how it works, when you qualify, and how to request reductions.

Think your penalties are unfair?

We review transcripts, identify abatement opportunities, and prepare requests that get results for Plantation taxpayers.

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Table of Contents

1) Common IRS Penalties on Back Taxes

  • Failure-to-File Penalty: 5% per month (max 25%) on unpaid balance.
  • Failure-to-Pay Penalty: 0.5% per month (up to 25%) on unpaid tax.
  • Accuracy Penalty: 20% on substantial understatements.
  • Payroll Penalties: Harshest; tied to Trust Fund Recovery Penalty.
Impact: Penalties can double balances if left unchecked. Abatement saves thousands.

2) First-Time Abatement (FTA)

FTA applies if:

  • All returns for prior 3 years were filed.
  • No significant penalties in prior 3 years.
  • Current year filings are complete.

FTA is a one-time tool—use it strategically.

3) Reasonable Cause Abatement

Reasonable cause means events outside your control prevented timely filing/payment. Examples:

  • Serious illness or death in family.
  • Natural disasters (e.g., hurricanes in Florida).
  • Records destroyed (fire, flood, theft).
  • Reliance on incorrect professional advice.

Documentation is key—hospital records, FEMA declarations, police/fire reports, or professional letters.

4) How to Build a Strong Request

  1. Pull IRS transcripts to confirm penalties assessed.
  2. Identify eligibility (FTA vs. reasonable cause).
  3. Draft request letter citing IRS standards (IRM 20.1).
  4. Attach supporting documentation.
  5. File with IRS or request by phone where applicable.

5) Transcript Review Before Requesting

We analyze IRS account transcripts to line up penalty start dates, ensure current compliance, and maximize abatement opportunities.

6) Timeline & Appeals Process

  • Request filed: IRS review can take 2–6 months.
  • If denied: Appeal via IRS Appeals Office.
  • Partial relief possible even if full abatement denied.
Tip: File accurate returns first—IRS won’t consider abatement if you’re still delinquent.

Penalty relief is possible.

We prepare abatement requests that meet IRS standards, backed by documentation, saving Plantation taxpayers thousands.

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FAQ: Penalty Abatement in Plantation, FL

Can I get penalties removed if I’ve never had them before?

Yes. First-Time Abatement may apply if you meet filing history criteria.

Do I need documentation for reasonable cause?

Yes. The IRS requires credible proof of circumstances like illness, disaster, or destroyed records.

Can payroll penalties be abated?

Yes, but they’re harder. Proof of extraordinary circumstances is critical.

Does penalty abatement eliminate interest too?

No. It removes penalties only. Interest on tax remains unless penalties tied to interest are removed.

What if my request is denied?

You can appeal. Many denials are reversed on appeal with stronger documentation.

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Disclaimer: This article is educational and not legal or tax advice. Polaris provides advisory services, not CPA audits or reviews. Always consult a qualified professional about your specific facts.

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