S Corporation - Late Filing Penalty?

[Zee]

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

[rosieea]

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.

[BOB W]

Penalty usually .....

..... comes from the state..........

[Safire]

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

[Bees Knees]

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.

[OldJack]

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