Don’t Delay: The September 15th Tax Deadline Is Right Around the Corner…

Posted on September 2nd, 2011 by Wade Christensen
Tax with 0 comments

September 15th has come quickly upon us, which means the income tax filing deadline for all calendar year-end business returns that were extended.  Some businesses choose to file their tax return after this “final” due date.  For the procrastinators out there, below is a quick reminder of the federal penalties associated with filing a tax return late:

C Corporations:

• The IRS has the ability to assess a penalty equal to 5% of the net tax due for each month or part of a month the return is filed late, to a maximum penalty of 25%.

Subchapter S Corporations:

• The IRS has the ability to assess a penalty equal to $195 per shareholder for each month the return is filed late(maximum of 12 months).  Therefore, the maximum penalty per shareholder is $2,340 if a tax return is filed more than 12 months late.

Partnerships, including multi-member LLCs:

• The IRS has the ability to assess a penalty equal to $195 per partner/LLC member for each month the return is filed late(maximum of 12 months). 

Remember, the penalties are paid at the business level and are nondeductilbe expenses for tax purposes.  To avoid any issues, be sure to file your return prior to the September 15th deadline!