The good news is that the IRS has stated that under the provisions of Rev. Proc. 84-35, the following partnerships will qualify, for an automatic waiver of the Sec. 6698 (A) (1) late-filing penalty for a partnership return” provided that the following 3 situation's apply as follows;

1.The partnership has 10 or fewer partners, all of who are natural persons, that means Trusts and Estates are excluded.

2. Each partner's share of each partnership item is the same as such partner's share of every other item;

3. The partnership can establish, if requested by the IRS, that all partners have fully reported their shares of income, deductions and credits on their timely filed returns.

Under the above situation, the IRS would generally allow the abatement of late filing penalties.

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