NASE Blogs

Tax Penalty

Aug 31, 2010

Q. I have an S corporation. I didn’t file my federal corporate taxes until June. Will I have to pay a penalty for late filing?

 

A. If you didn’t request and receive an automatic six-month extension for filing your corporate taxes, then yes, you’ll be subject to a late filing penalty.

 

The penalty is imposed on any S corporation or partnership that files a return past the due date, including extensions, or files a return with incomplete information.

 

For the tax year 2009, the penalty is $89 and is owed by every partner or shareholder for each month or fraction of a month that the return is late, up to a maximum of 12 months. So even though your return is late, still file as soon as possible.

 

For taxable years beginning after Dec. 31, 2009, the late filing penalty increases to $195.