Penalties for filing a delayed send can be leading.
The Internal Revenue Servicing requires S corporations to string a Construction 1120S for way charge purposes. The go back is due no successive than the 15th of the third month after the collection's impost year ends. Whether the give back fails to comprehend all confidence and supplemental schedules that are required, the reimburse can be considered as dilatory and hence man to penalties. Therefore, if the return is filed three days late and there is only one shareholder, the penalty would be $89. If the return is filed 35 days late and there are two shareholders, the penalty would be $356.
Monthly Penalty (Tax Due)
If tax is due with the return, the flat rate penalty of $89 per month per shareholder is increased by a percentage of the tax amount.These penalties are moreover to any care charged for the behind value of taxes due.
Monthly Penalty (No Tax Due)
Whether the answer is not filed by the generation it is due, including any extensions, the penalty (as of 2009 excise year) is $89 per month per shareholder for the aboriginal 12 months whether there is no tariff due with the repay. The monthly penalty is assessed for every complete or partial month.This percentage for the 2009 tax year is 5 percent of the tax due per month or partial month to a maximum of 25 percent of the tax due. If filing the return more than 60 days after it is due, the additional penalty is the smaller of either $135 or the amount of the tax balance that is due with the return.
Penalty for Failing to Furnish Schedule K-1
The corporation must provide a Schedule K-1 to each shareholder and include these forms with the return. Failure to supply these to shareholders or providing incorrect or incomplete information can result in additional penalties. If the failure is deemed not To possess been disregarded intentionally, the penalty for the 2009 tax year is $50 per Schedule K-1 that was not issued. If the IRS feels the neglect was intentional, the penalty is doubled to $100 or 10 percent of the total amount of required items, whichever is greater.
