IRS Partnership Late Filing Tax Penalties

You filed your Partnership return late.  A few months later, you receive a letter from the IRS.  The IRS charged the Partnership late filing tax penalties.

Partnership tax returns are generally due on April 15.  Unless an extension is filed.  If you miss the filing deadline, the IRS will issue late filing tax penalties.  You may be able to remove the IRS tax penalties.  Click Here to learn about penalty abatement

Partnership Late Filing Tax Penalties

IRC Sec. 6698, filing an Partnership tax return late results in a per month tax penalty of $195 multiplied by the number of shareholders.  The number of months cannot exceed 12 months.

IRS Tax Penalties Calculation Example

The Partnership tax return is due on April 15, 20X4.  The Partnership tax return was filed late on October 15, 20X4. The owners did not file an extension.  The return is 6 months late.  There are three members in the Partnership.  The late filing tax penalties are $3,510. (6 * 3 * 195)

Months Late 6
Number of members 3
Late filing penalty 195
Total Tax Penalties 3,510

Generally, a Partnership does not owe taxes.  The IRS will charge tax penalties for late filing late.  You received a large IRS bill.  You may qualify for tax penalty relief for certain circumstances.  You always filed on time or your accountant did not properly filed the extension.

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IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.