Increased Penalty for Failure to File Partnership or S Corporation Returns

(Source: on November 10, 2009)

Civil penalties apply for failure to file a partnership and S corporation returns. The penalty is $89 times the number of partners or shareholders for each month (or fraction of a month) that the failure continues, up to a maximum of 12 months for returns required to be filed after December 31, 2008.

New Law. Under the Act, the base amount on which a penalty is computed for a failure with respect to filing either a partnership or S corporation return for a tax year beginning after December 31, 2009, is increased to $195 per partner or shareholder. (Code Sec. 6698 (b)(1) and Code Sec. 6699 (b)(1), as amended by Act Sec. 16)

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