March 16th Filing Deadline Has Passed - Late-filing Penalty Info

[Eric Shadowens]

The March 16th due date has passed and among returns due were partnership and s-corp returns.

Many were hopeful IRS would have made an announcement regarding filing due date relief, but it's understandable the Coronavirus is testing emergency plans of every business, including IRS.

Generally, no taxes were due yesterday since income/losses from partnership and s-corp returns passthrough to individuals. The more important tax relief date would be April 15th.

When partnerships or s-corps fail to file their returns by the due date, the IRS will impose a minimum penalty of $205 for each month or part of the month the return is late multiplied by the number of partners or shareholders.

I've included links to IRS instructions regarding penalty relief below. Relief request can be made once you receive notice from IRS regarding a late filing of your return.

Also, some states have a March 16th filing due date for partnerships and s-corps. A link is included below to an AICPA website that is tracking announcements from states regarding filing relief.

Please consider connecting with your tax advisor to stay on top of your business taxes during this tough time.

Stay safe!

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief

https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf