How do you pay the penalty for filing an 1120S return late? Do you include it with the form submission?

asked 16 Apr '11, 15:34

Susan%203's gravatar image

Susan 3
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The penalty for failure to file a Form 1120-S return is $195 per month per shareholder up to 12 months (IRC §6699). The penalty is assessed against the corporation.

If any S corporation taxes are due, a late filing penalty may be imposed equal to 5% of tax owed per month, up to 25%. If the return is more than 60 days late (including extensions) a minimum penalty of the lesser of $135 or the amount of unpaid tax applies. A late payment of tax penalty may also be imposed equal to one-half of one percent per month, up to 25%. (IRC §6651)

I would suggest allowing the IRS to compute a penalty and send you a bill.

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answered 18 Apr '11, 02:18

Bill-EA's gravatar image

Bill-EA
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THEY are definitely sending out penalties to s corps who file late and without good cause - if it is the first time - let the IRS send you a bill - then try to get your client out of it with a letter.

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answered 19 Apr '11, 02:35

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JAN
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There is a failure to file penalty that will be assessed by the IRS. I am concerned by the fact that if the 1120S are filed late, what about the corporate officer(s) returns. Their filing will be subject to failure to file and failure to pay plus interest if the proper extensions were not filed and taxes paid with the extension. All to often I have seen the filing of one return indicates the filing and/or non filing of others. Also, do not forget state and local taxes and the additional issues these present based upon tax jurisdictions. Michael DeOrio,EA

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answered 04 May '11, 07:21

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M DeOrio
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Sandy Sea: You are incorrect. There are penalties for failure to timely file S-corp and Parterhsip returns even though there are no income taxes to pay.See answer from Bill-E above.

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answered 31 May '11, 15:04

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Doug 1
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FYI ... I just got my penalty for late filing of the 2008 1120S waived with one phone call.

Here's the information: (1) Small business with only one owner/employee; (2) Previous 3 years word of 1120S filed on time; (3) Personal filed on time; (4) Computer failure in 2008. Took some recovery time; (5) Thought we had filed the 2008 return; (6) September 13, 2011: We checked our records and only found an “unsigned return.” The personal 2008 1040 for the one shareholder was filed in a timely manner and recently needed to be amended This leads me to believe that it is possible that this was not filed. I’ve enclosed a newly signed and dated form to ensure that we provide the correct information.

I CALLED THEM WAITED ON THE PHONE FOR 40 MINUTES AND SPOKE IN A VERY RESPECTFUL TONE.

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answered 14 Nov '11, 11:44

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steveghi
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-2

There should be no penalty for the late filing of an 1120-S as it is pass through. The s/h's may have to pay penalties however on not filing estimated taxes timely.

If you are speaking of a particular "state" then each state may charge a penalty for not filing timely.

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answered 18 Apr '11, 01:06

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SandySea
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Actually, as many are now finding out, there are penalty provisions for the late filing of pass-through tax returns. In the past, the IRS has been lax about asserting these, but with the government in need of MORE money and with a decline in income and related tax revenues, the IRS IS NOW assessing the late filing penalty on on all entities - as Bill-EA pointed out.

(23 Nov '11, 11:02) EAgent
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Asked: 16 Apr '11, 15:34

Seen: 16,087 times

Last updated: 23 Nov '11, 11:02