When you’re already behind on taxes, the added penalties and interest can feel overwhelming — almost like trying to climb out of quicksand. Every month that passes makes the balance grow, turning a manageable issue into a major financial burden. But here’s the encouraging part: Hawaii taxpayers may not have to pay all of those penalties.
The IRS offers several forms of penalty abatement that can eliminate or reduce extra fees, often bringing meaningful relief to individuals and businesses. At Tax Relief Heroes, Larry Kiyohiro, Esq., helps clients from Honolulu to Hilo — and across the mainland — successfully navigate this process. As a seasoned Hawaii tax attorney with decades of financial and business experience, Larry understands how to structure strong abatement requests tailored to your situation.
Why IRS Penalties Add Up So Quickly
IRS penalties are automatic and compound rapidly. If you file late, pay late, miss estimated payments, or fall behind for any reason, new charges are added every month. Interest then accrues on top of those penalties, making your balance grow faster than most Hawaii taxpayers expect.
Many people don’t realize that the IRS is often willing to forgive penalties — if you can show reasonable cause and present a well-documented request.
How IRS Penalty Abatement Works
Penalty abatement isn’t a special loophole — it’s standard IRS policy. The agency recognizes that taxpayers occasionally fall behind for reasons outside their control, which is especially common in Hawaii where natural disasters, medical emergencies, and economic disruptions can occur.
If you can demonstrate that you acted responsibly but were unable to meet your tax obligations due to circumstances beyond your control, the IRS may reduce or remove penalties entirely.
Types of Penalty Relief Available to Hawaii Taxpayers
• First-Time Penalty Abatement (FTA): For individuals or businesses with a clean filing and payment history.
• Reasonable Cause Relief: For situations such as serious illness, natural disasters affecting Hawaii, loss of records, or significant financial hardship.
• Administrative Error Relief: For cases where IRS mistakes or delays contributed to the penalties.
Each type requires supporting documentation — something a Hawaii tax attorney can help gather and present clearly.
Why Work With a Hawaii Tax Attorney Instead of Handling It Yourself
While taxpayers are allowed to submit abatement requests on their own, the majority are denied due to incomplete explanations or missing evidence. Working with an experienced Honolulu tax attorney like Larry Kiyohiro increases the likelihood of success because he can:
- Review IRS transcripts to confirm your eligibility
- Draft a strong and persuasive case letter
- Organize documentation in the format IRS agents prefer
- Communicate with the IRS on your behalf
- File an appeal if your initial request is denied
Larry also ensures your request doesn’t unintentionally trigger collections or additional scrutiny — something Hawaii taxpayers are understandably cautious about.
What About IRS Interest?
The IRS rarely removes interest unless it results from their own administrative error. However, when penalties are abated, the interest attached to those penalties often disappears as well, lowering your overall balance. Many Hawaii clients are surprised by how much their tax debt drops once penalties are removed.
Protecting Your Financial Future
Reducing penalties isn’t only about saving money — it’s about restoring financial stability. Once penalties come off your account, it often becomes easier to qualify for:
- Installment agreements
- Offers in compromise
- Other IRS tax resolution programs
Larry helps Hawaii taxpayers build long-term compliance strategies so they can move forward with confidence and avoid future IRS issues.
Contact Tax Relief Heroes
If IRS penalties are keeping you stuck, you’re not alone — and help is available right here in Hawaii.
📞 Contact Tax Relief Heroes today to speak with Larry Kiyohiro, Esq., an experienced Hawaii tax attorney dedicated to helping local residents and businesses reduce IRS penalties and regain financial peace.