Late Filing Scorp Penalty

[Harvey Lucas]

2007 Scorp returns, extended by 3-15-08 to 9-15-08 due date.

Assuming there is no tax liability for the Scorp, there is currently no late filing penalty for a late filed 1120S filed after 9-15-08?

Harvey Lucas

[JohnH]

Not any more.

The late-filing penalty for an S-Corp return is now $85 per month, per shareholder, up to a maximum of 12 months. This is a new goodie the government enacted for itself in 2008. Plus state penalties, if any.

[Harvey Lucas]

Thanks

Thanks John.

[les grans]

Along with this new penalty for late filing, didn't the IRS shorten the S corp and partnership extension of time to file from the previous six months to only five months now?

[Lion]

Next Year

Next year for the five-month extension, not current tax season.

[JON]

Next year

the 5 month extension?????????? The only extension changes are Trusts and 1065's-there is no change for S Corps they still go to 9/15/09!!??? Right

[les grans]

Yes, you're absolutely right. According to IR-2008-84:

This change will be effective for extension requests with respect to tax returns due on or after Jan. 1, 2009, and applies to business entities that file the following returns and forms that have a tax year ending on or after Sept. 30, 2008:

1. Form 1065, U.S. Return of Partnership Income
2. Form 1041, U.S. Income Tax Return for Estates & Trusts
3. Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

The regulation does not change the process for requesting an extension of time to file, nor does it affect extensions of time to file other types of business returns, such as those used by S corporations. (emphasis added...)