Partneship late filing penalty

[Judy rocks]

I have a domestic Partnership (2 partners) that filed their 2009 & 2010 form 1065 tax returns in late 2011. The penalties for the 2 years are almost $7,000. We will file 2011 in early January. There were huge extenuating circumstances with moving overseas and returning. Through 2008 the Partnership had filed on time and had otherwise been compliant. What is the best I can expect as far as getting the penalties abated. Thanks!

[appelman]

Are they by any chance a qualifying small partnership?

If so, late filing penalties are automatically waived. See:

http://www.google.com/url?sa=t&rct=j&q=qualifying%20small%20partnership&source=web&cd=2&cad=rja&ved=0CDoQFjAB&url=http%3A%2F%2Fwww.unclefed.com%2FTax-Bulls%2F2003%2Frr03-69.pdf&ei=IxLhUJGQFqSQiAK0q4CQCw&usg=AFQjCNG-VbISziZyPJpVDPY7Ldc_dlMwHA&sig2=-6RB19LQHlhoQM_R6wm3oQ&bvm=bv.1355534169,d.cGE

Otherwise, you can start with the business Practitioner Priority Line and see what they will do for you. Otherwise, you or your client is going to have to write one or two very persuasive letters. It sounds like you should have a pretty good case for having the penalties waived.