I feel like this should be a basic question but haven't been able to find the answer - tons of stuff on late S-corp elections but nothing covering the $195 per month per shareholder late filing penalty. (If it's there, it's buried in all the general late S-corp election information.)
So, let's assume single member LLC previously filing Schedule C. The 1040 return is on extension. We'll assume they file their return by 7/15 and make the late S-corp election. So the S-corp return is at that point 4 months late, right? Would they have an $780 penalty for the late filing?
So, let's assume single member LLC previously filing Schedule C. The 1040 return is on extension. We'll assume they file their return by 7/15 and make the late S-corp election. So the S-corp return is at that point 4 months late, right? Would they have an $780 penalty for the late filing?
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