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S Corporation - Late Filing Penalty?

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    S Corporation - Late Filing Penalty?

    Since an S-Corp passes it's income/loss thru to shareholder's, in what situation would the 5% late filing penalty apply?

    #2
    Originally posted by Zee
    Since an S-Corp passes it's income/loss thru to shareholder's, in what situation would the 5% late filing penalty apply?
    I've never seen the IRS go after an S Corp for that, but I suppose they could. They will assess the penalty against a partnership, but there is a safe harbor for that and the penalty is easily abated.

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      #3
      Penalty usually .....

      ..... comes from the state..........
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

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        #4
        Yep, Virginia hits you for $100 if you file late.

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          #5
          S corporations are subject to all kinds of taxes at the entity level. There is the Excess Net Passive Income Tax, Built-In Gains Tax, Investment Credit Recapture Tax, and the LIFO Recapture Tax. If The S corporation files late and did not make estimated tax payments to cover these taxes, the 5% per month late filing penalty kicks in. See TTB, page 19-10.

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            #6
            There is also a $50 penalty per K-1 not provided to each shareholder and penalties are increased if intentionally disregarded (IRCĀ§6722). Small Business Quickfinder page D-1.

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