Thursday, November 8, 2012

PENALTY FOR FILING LATE BUSINESS RETURN

Q. I am embarresed to say this, but I am going to be late filing my business return.  Can you please tell me what the penalty is?

A. The penalty for a late 1120S & 1065 is $195 for each month multiplied by number of shareholders. So, if there are 5 partners or shareholders and the tax return is 6 months and a day late the penalty is $6,825 (5 partners x $195.00 x 7 months). Why 7 months you may ask? One day over counts as a full month.

No comments: