Regarding the 2021 Federal tax return for an S-Corp that was just filed on March 31, 2023. An extension was filed last year for the return. Through oversight, the return was not e-filed. What is the penalty for the late filing?
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I believe it's $210 per shareholder per month -
If this is your first time late, you can probably get a waiver on this penalty.
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Request abatement of penalty. It will probably be granted.
I filed my 2021 S-Corp return in Oct 2022. I created the efile on 9/2/22 but overlooked efiling it before the 15th. Wrote a letter stating, "For some unknown reason, the efile for the return was created but not transmitted. This wasn’t noticed until after the filing deadline. Since we have been compliant with all tax filings for more than three years, we are requesting a waiver for the late filing penalty under the First-Time Abatement Program." After a few letters from the irs saying "we need 60 more days", they abated the penalty last week.
As an aside, I'm the only officer of the company, the only employee, and the person who signed the 1120S. The company and I have the same address. The name of the company is David J Weigel CPA PC. My name is obviously David Weigel. The letter I wrote requesting abatement of the penalty was written on corporate letterhead and signed by me. In the abatement letter addressed to the corporation, the irs said, "Dear Taxpayer: We're responding to an inquiry on your behalf from David Weigel. We have no record that you authorized him to act for you. Please notify him that we replied directly to you."
If the irs isn't authorized to discuss a corporate return with the corporate officer who signed the return, who are they authorized to discuss it with and who were they sending this letter to?"Taxation is the price we pay for failing to build a civilized society." ~ Mark SkousenComment
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Thank you for the responses on this matter. Very helpful!Comment
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