IRS Penalty for late file on S corp, didt file extension

[Mike Nelson]

So I recieved a notice today for a $1560 fine for an LLC taxed as S corp that I started beginning of this year. I didnt file the extension, as the SCORP didnt make a dime ( im an idiot). I realized after it was too late I needed to file a return showing I made nothing. So now I have a late filing Penalty of $1560 on a business that didnt do anything or make any money! Is there anyway to get this fined waived? I read an article by Brandon Turner about a similar scenario, but is it really as simple as calling and explaining that? Seems the IRS wouldnt care about my screw up....

[Brian Schmelzlen]

Hi Mike,

Yes. I call the IRS for my clients all the time asking time them to waive penalties for stupid mistakes.

They do have a policy that they waive penalties for first time offenses if you asked, since technically the reason for the penalties is to get you to comply with the law. Calling and asking for a waiver implies that you will comply in the future.

If the first person you talk to at the IRS doesn’t give you a waiver, be polite and hang up. Then call right back and try again. My experience is that if you don’t get it with the first person, you will with the second (of you are ever going to get it).