Welcome Guest. Register Now!  



Find a tax professional cpa near you

Reply
 
LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 09-29-2010, 07:58 AM
Junior Member
 
Join Date: Sep 2010
Posts: 2
Late Filing Penalty for S-Corp

Please help.
I am in a big dillema.
A couple of months ago I received a notice from the Louisiana Department of Revenue saying I owed back taxes on a S-Corp that had been inactive since 2005 but had not been disolved. I contacted my accountant and she prepared the state and federal tax forms for the 2005 - 2009 years and told me to send those in, which I did. The issue with the state has been cleared up. Now I'm receiving notices from the IRS stating I owe them money for filing Late. The penalty for just 1 year is quite substantial.

I have my accountant working to try to get this abated, but as of now, the IRS has not responded to her requests and the interest keep building up.

Do I owe this?
I saw on another post on this site that I don't need to file federal returns for an inactive s corp. Is this still the case?
Or did my accountant make a mistake by telling me to send in the federal returns late?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-02-2010, 05:37 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,347
Blog Entries: 3
Regretably, this appears to be true!

Per the IRS, "For tax years beginning after 2009, the late filing penalty for an S corporation return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year.

But, the IRS has also stated that "No penalty will be imposed if the corporation shows that the late filing was due to reasonable cause."

My hope is that your accountant has demonstrated sufficient reasonable cause to enable the IRS to abate these late filing penalties.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 10-02-2010, 06:38 PM
Junior Member
 
Join Date: Sep 2010
Posts: 2
Did I need to file

Was I required to file?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Late filing of Form 2553 for S Corp status totalnet S-Corporation 0 03-13-2009 12:24 AM
S Corp State late filing John S-Corporation 1 01-04-2009 04:08 PM
What is the penalty for the late filing of a Connecticut Corporation? TaxGuru Connecticut 0 12-13-2008 01:09 AM
What penalty does California State assess for a late filing of an LLC Tax Return? mabalone California 1 09-04-2008 10:22 AM
Can the IRS abate the late filing penalty for an LLC or Partnership? TaxGuru Limited Liability Company 0 12-13-2007 05:26 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning