1120-S Late Filing

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Subject Author Date 1120-S Late Filing R. Pile 05-26-2009  Re: 1120-S Late Filing Harlan Lunsford 05-26-2009  Re: 1120-S Late Filing Paul Thomas, CPA 05-27-2009  Re: 1120-S Late Filing Harlan Lunsford 05-27-2009  Re: 1120-S Late Filing Katie 05-28-2009  Re: 1120-S Late Filing Tom Russ 05-29-2009  Re: 1120-S Late Filing Katie 07-05-2009  Re: 1120-S Late Filing Drew Edmundson 05-27-2009  Re: 1120-S Late Filing Harlan Lunsford 05-27-2009
Posted by R. Pile on May 26, 2009, 12:20 pm Please log in for more thread options Client is 100% owner of an S Corp. The company is inactive; no revenue, no expenses except for $100 a year to maintain his business license. Taxes are, obviously, zero. In 2008 filed an extension request late, but the actual return was filed a couple of weeks later, along with the owner's personal 1040. Just received a notice of an $89 late filing penalty. From the instructions I see where this is a flat-fee penalty, unrelated to tax due. What is the possibility and what argument can be used to abate this penalty? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Harlan Lunsford on May 26, 2009, 2:43 pm Please log in for more thread options R. Pile wrote: > Client is 100% owner of an S Corp. The company is inactive; no > revenue, no expenses except for $100 a year to maintain his business > license. Taxes are, obviously, zero. > > In 2008 filed an extension request late, but the actual return was > filed a couple of weeks later, along with the owner's personal 1040. > > Just received a notice of an $89 late filing penalty. From the > instructions I see where this is a flat-fee penalty, unrelated to tax > due. What is the possibility and what argument can be used to abate > this penalty? > You say "in 2008"; do you not mean the 2008 return which was filed in 2009? This year? If you're talking about the 2007 return field IN 2008, the $89 penalty is way too small for such a late filing. But since the extension was not filed by due date, you haven't a prayer for penalty abatement. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Paul Thomas, CPA on May 27, 2009, 10:30 am Please log in for more thread options > R. Pile wrote: >> Client is 100% owner of an S Corp. The company is inactive; no >> revenue, no expenses except for $100 a year to maintain his business >> license. Taxes are, obviously, zero. >> >> In 2008 filed an extension request late, but the actual return was >> filed a couple of weeks later, along with the owner's personal 1040. >> >> Just received a notice of an $89 late filing penalty. From the >> instructions I see where this is a flat-fee penalty, unrelated to tax >> due. What is the possibility and what argument can be used to abate >> this penalty? >> > You say "in 2008"; do you not mean the 2008 return which was filed in > 2009? This year? If you're talking about the 2007 return field IN 2008, > the $89 penalty is way too small for such a late filing. > > But since the extension was not filed by due date, you haven't a prayer > for penalty abatement. > Are there any circumstances that would have prevented the shareholder from obtaining an extension? Health issues seem to be the most commonly allowed excuse to get some penalties waived. There may be other valid reasons to get the penalty abated, but forgetting isn't one of them. Not communicating with the tax preparer (you) isn't one of them either. -- Paul Thomas, CPA www.paulthomascpa.com 770-725-1433 Office -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Harlan Lunsford on May 27, 2009, 5:25 pm Please log in for more thread options Paul Thomas, CPA wrote: >> You say "in 2008"; do you not mean the 2008 return which was filed in >> 2009? This year? If you're talking about the 2007 return field IN 2008, >> the $89 penalty is way too small for such a late filing. >> >> But since the extension was not filed by due date, you haven't a prayer >> for penalty abatement. >> > Are there any circumstances that would have prevented the shareholder from > obtaining an extension? Health issues seem to be the most commonly allowed > excuse to get some penalties waived. There may be other valid reasons to > get the penalty abated, but forgetting isn't one of them. Not communicating > with the tax preparer (you) isn't one of them either. > Corporations don't have health issues, and that is the extension that really matters here. ChEAr$, Harlan Lunsford, EA in LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Katie on May 28, 2009, 8:34 pm Please log in for more thread options > Paul Thomas, CPA wrote: > >> You say "in 2008"; do you not mean the 2008 return which was filed in > >> 2009?  This year?   If you're talking about the 2007 return field IN 2008, > >> the $89 penalty is way too small for such a late filing. > > >> But since the extension was not filed by due date, you haven't a prayer > >> for penalty abatement. > > > Are there any circumstances that would have prevented the shareholder from > > obtaining an extension?  Health issues seem to be the most commonly allowed > > excuse to get some penalties waived.  There may be other valid reasons to > > get the penalty abated, but forgetting isn't one of them.  Not communicating > > with the tax preparer (you) isn't one of them either. > > Corporations don't have health issues, and that is the extension that > really matters here. > > ChEAr$, > Harlan Lunsford, EA in LA > You also have to look at the statute to be sure there is a reasonable cause exception to the penalty. Some state penalties are "strict liability," i.e., if you didn't follow the rules you owe the penalty, regardless of the reasons why. California has fallen in love with this idea recently; the penalty for a tax deficiency over $1 million for a corporation or unitary group of corporations (20% of the deficiency, in addition to any other applicable penalties) has no reasonable cause exception. This was part of the budget trailer bills enacted earlier this year in the first effort to balance the 08/09 budget. Clearly intended to be a revenue raiser. It's retroactive to tax years beginning on or after January 1, 2003. That's not a typo: I mean 2003. Katie in San Diego -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted another late filing of TD F 90-22.1 February 2, 2007, 7:17 pm Late filing? ? ? April 3, 2007, 2:07 am f8832, Late Filing Election August 8, 2007, 7:08 pm Penalty for Filing Income Taxes Late? April 24, 2008, 10:25 am Question about Late Filing, federal/state May 7, 2008, 2:25 pm Filing Late - What is quckest way to get 2006 return into the system May 16, 2008, 9:07 am Same time limit for amended return when original filing years late? 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