Discussion:C-Corp Late Filing Penalty
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Discussion Forum Index --> Basic Tax Questions --> C-Corp Late Filing Penalty
Discussion Forum Index --> Tax Questions --> C-Corp Late Filing Penalty
| 2 December 2008 | |
| I have a C-Corp which did not pay any estimated or extension taxes when timely filed in March. Their return is now late and my system is penalizing them for the 9 months from when the return was due in March. I believe this is correct, due to the fact that they did not pay in at all, but I can find nothing saying that this is right or wrong. Can anyone help me here please. | |
| 2 December 2008 | |
| Extensions are for time to file not time to pay. If they owed quarterly estimated taxes, their penalty will be for more than 9 months. | |
| 2 December 2008 | |
| Use the yellow box for a search or visit www.irs.gov and search for late filing penalty. They owe Tax + Penalty + Interest. Maybe for 08, they will file on time. | |
| 2 December 2008 | |
| It sounds like you filed an extension. Fine. But it also sounds like the corp return was not filed by the extension due date of 9/15. I believe this means that the extension is no longer valid, and that the corp will have a 25% late filing penalty. 5% a month up to 25% on the balance due at 3/15. Someone correct me if I am wrong . . . | |
| 4 December 2008 | |
| Even if the return was filed by the extended due date, the Service has every right to assess a late filing penalty if the taxpayer did not make a good faith estimate of its tax liability and include a payment for that amount with the extension request in March.
The moral of the story is to never, never indicate a zero tax liability on an extension request if you know that there is a balance due. In addition, if the taxpayer failed to remit the estimated balance due with the extension request, the extension request is automatically void. See Sec. 6081(b). | |
| 4 December 2008 | |
| Thank you everyone for your help. That was my impression as well, but it's always nice to get some confirmation. | |
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