Don’t forget! The corporate extension deadline, which includes partnership returns, is September 17th.
Missing the corporate extension deadline can be costly! The IRS has increased the fine for filing an entity return late, even if no taxes are due. Flow through entities such as s-corporations or partnerships incur a penalty on a per partner or per shareholder basis. The penalty for filing these returns late is $195.00 per partner or shareholder for each month the return is considered late.
For example, if a partnership return with 4 partners files their partnership return even 1 day past the extended due date, the return is considered late. Each one of the 4 partners will receive a late filing penalty of $195.00 for a total penalty of $780.00 each month the return is late.
The penalties are assessed each month the return is late up to a maximum penalty of $2,340.00 per partner, so if the return is 12 months late the total penalty is $9,360.00. The penalty is giving the IRS your hard earned dollars that could be better spent in your business. Don’t file your corporate or partnership return late and give the IRS a freebie.
If you filed a corporate extension, chances are that you have also filed a personal extension. Get your personal information in as soon as you can to help us meet the October 15th personal extension deadline!