| What penalties are assessed on New York S Corporations?
New York State imposes penalties on S corporation that fail to
1. to provide shareholder information.
2. to file Form CT-3-S on time.
3. to provide the shareholder information required (all items of income, loss, deduction, and other pertinent information).
According to NY State Department of Taxation, the penalty is $50 per shareholder per month or fraction of a month, up to a total of $250 per shareholder (section 685(h)(2)). The Corporation will also have to pay an additional penalty of $50 for each shareholder whose social security number is not shown on the tax return (section 685(k)).
Thus, it is important to get all the correct information prior to filing an S corporation tax return to avoid any imposition of any penalties by New York State.
| 
Linear Mode
