Discussion:Rev Proc 84-35 Partnership late filing

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Discussion Forum Index --> Advanced Tax Questions --> Rev Proc 84-35 Partnership late filing

Discussion Forum Index --> Tax Questions --> Rev Proc 84-35 Partnership late filing

Cocpa (talk|edits) said:

11 September 2009
With the 1065 filing deadline change from 10/15 to 9/15 is anyone aware of a reason(s) while Rev Proc 84-35 would still not work for 1065 late filings?

Also, has anyone had any experience/thoughts on getting the new $89/month per shareholder S Corp late filing penalties waived?

MWPXYZ (talk|edits) said:

12 September 2009
I believe it still "works" - it did for my partnerships/LLC's in 2007 (except 1, so far).

RazorbackCPA (talk|edits) said:

20 November 2009
I have some chronically late LLC filers who always created new LLCs and didn't tell me about them (so they were never extended).

I have had the penalties waived for at least 5 LLCs per year for about 4 or 5 years. This year I had 5 that came in after 09/15/09. At this point I'm going to try the same exclusion...anybody else had success yet?

I may try the same thing for 2 S Corps and see if it slips through.

Ruttputt (talk|edits) said:

21 November 2009
I called the Tax Practitioners Hotline (866-860-4259) yesterday with a POA and they removed the 1065 late filing penalty (filed 9/23) via my verbal request citing Rev Proc 84-35 - no muss, no fuss. I have 3 late S corps, and I may try as well, but although I have found some surmising that the IRS might extend Rev Proc 84-35 to S corps, I don't believe it has done so to date.

JlcooperCPA (talk|edits) said:

15 December 2009
I was going to take the Rev. Proc. 84-35 approach for a late-filed 1065 but one of the partners is an S-Corp.--not a "natural person"-- and thus not entitled to relief technically speaking. Has anyone attempted this?

StewartCPA (talk|edits) said:

5 February 2010
I have one situation with a late filed S Corp (one shareholder) for TY 2008. It was filed under extension on October 13, 2009 (I have USPS receipt) and IRS imposed a two month late filing penalty. I replied to the notice and asserted Rev Proc 84 -35. They replied and said they were considering my request. Last week they wrote back and stated, "We cannot remove the penalty.......... Rev Proc 84 -35 can be used for penalty relief on certain partnerships not for S Corporations." I will be submitting a supplemental protest / request for Appeals consideration shortly. I had not originally mentioned the IRS's incorrect computation of the penalty as I was hoping Rev Proc 84 -35 would have done it. In addition to reasserting that the rational of Rev Proc 84 -35 situation for partnerships with ten or less partners should apply to S Corps with ten or less shareholders. In my opinion the only reason Rev Proc 84 -35 did not mention small S Corporations is at that time (1984) late filed S Corporations had no similar late filing penalty, now they do! I will also state that since filed before the old October 15 extended due IRS should exercise it's discretion and abate the penalty. I would also hope IRS would have corrected their systemic problem of treating the date they open the return for processing as the mailing date. Bad enough to have to deal with the $79 penalty but do to their error it is assessed at $178.

DaveFogel (talk|edits) said:

6 February 2010
You cannot extend the reasoning of Rev. Proc. 84-35 to S corporations. The Rev. Proc. is very specific in that it applies only to certain partnerships. It is anticipated that sometime in the future, the IRS will issue a Rev. Proc. similar to Rev. Proc. 84-35 to cover S corporations, but at the present time, the penalty applies unless there is reasonable cause.

In my opinion, your best argument is that the S corporation return was timely filed. If you have proof that the S corporation return was timely mailed (certified mail receipt), then your argument should be that the "timely mailing, timely filing" rule of Sec. 7502 applies. Send a copy of the receipt to the IRS.

ADBCPA (talk|edits) said:

6 February 2010
I usually don't mess with late returns, but have a new client who just received a letter from IRS with a penalty on a late 08 1065.

What is considered "reasonable cause" - he blames it on hiring a new bkkpr to replace the incompetent one he had. He say he had to start fresh on the books - hence the late filing. Does he have any chance of abatement ?

EA rob (talk|edits) said:

6 February 2010
I have a new client who paid the late filing penalty last year and came to me this year to prevent this and I was wondering if I could use this to recoup her late penalty from last year?

DaveFogel (talk|edits) said:

6 February 2010
A good source to consult to determine whether the facts and circumstances constitute reasonable cause for late filing (or for other penalties) is the Internal Revenue Manual. Start at section Here's a link to get you started:


Also, Reg. 301.6651-1(c) discusses what you need to submit to the IRS to show that reasonable cause exists.

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