Abating Penalties for Late Filing of Partnership Returns
Sometimes we find ourselves in a difficult situation that causes a tax return to be filed late. What happens if a partnership return is late and no extension has been filed? The penalty will be $195 per partner per month. Let’s say your partnership has five partners and the return is four months late.
That penalty would be $3,900. That’s a big penalty for what seems like a small matter. Is there ever a time when the IRS will not charge this penalty? Yes, there are at least two instances. The first is when the partnership can show that there was reasonable cause for filing the return late. The second is when you can meet the provisions of a specific IRS revenue procedure.
Call me to help get your penalties abated.