S Corp late tax penalty
IRS is imposing late 2010 tax penalty for my S Corp. $4K+ on my $20k revenue. I tried penalty abatement letter with no avail. What is my next recourse: dissolution? bancruptcy? ignore IRS? or pay them
1
38
d3XU5ytV8r4yUOacwZ5xHE
02/03/12 11:15pm PST
Viewed by asker 02/11/12 4:18pm PST
Viewed by asker 02/11/12 4:18pm PST
24 Replies
Charlotte256
Questions asked: 5
Questions answered: 4549
Points earned: 12684
Questions answered: 4549
Points earned: 12684
Accountant Community AllStar
Advisory council of Accountant community power users.
02/03/12 11:31pm PST
The solution
Best option is pay them ASAP before interest gets higher.
When anyone doing nothing needs help, I will gladly help that person do nothing.
02/04/12 5:44am PST
Never ignore them. That's the worst thing you can do. Do you have a tax preparer who can help you with them? Is there an office you can go to where you can speak with someone? Did they refuse your abatement request? If at first you don't succeed, try and try again; but DO NOT ignore.
Accountant Man
Questions asked: 132
Questions answered: 10671
Points earned: 29410
Questions answered: 10671
Points earned: 29410
Accountant Community AllStar
Advisory council of Accountant community power users.
02/04/12 5:56am PST
Since S corps don't ordinarily pay income tax was is the penalty for, late filing?
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
02/04/12 10:49am PST
I believe it is $195.00 per month for the late filing of the returns.
02/04/12 10:55am PST
But that would mean DPA was clipped for being 21 months late. Anybody have a calendar that comes out to that for a 2010 return or are we dealing with other issues?
02/04/12 1:13pm PST
Its $x per month per shareholder
edit-Sorry, I typed before I saw that Amy mentioned the per shareholder part
02/04/12 1:21pm PST
DPA mentioned "my corporation" and "my $20k revenue", so it sounded like he was the sole shareholder.
IRMN
Questions asked: 53
Questions answered: 16305
Points earned: 52304
Questions answered: 16305
Points earned: 52304
Accountant Community AllStar
Advisory council of Accountant community power users.
Intuit Moderator
Mod/Co-mod
02/04/12 6:35am PST
How about consulting a professional tax preparer instead of asking a bunch of strangers who could be ax murderers or even worse - IRS employees.
If this answers your question please click, um, ok I forgot what you are supposed to click. If this answered your question, how about just saying thanks and we will call it good.
02/04/12 5:58pm PST
No. but I have to sort of feel sorry for any IRS agents who read this and find out they're worse than either of those. I've actually dealt with some who are helpful, and then again...
sjrcpa
Questions asked: 22
Questions answered: 5562
Points earned: 16638
Questions answered: 5562
Points earned: 16638
Accountant Community AllStar
Advisory council of Accountant community power users.
ProAdvisor
Members of the QuickBooks ProAdvisor Program
Intuit Moderator
Mod/Co-mod
02/04/12 9:21am PST
A tax professional could help you decide whether to appeal trhe decision. the penalty is based on lateness, not revenue.
The more I know, the more I don't know.
ArchieLeach
Questions asked: 356
Questions answered: 9032
Points earned: 11119
Questions answered: 9032
Points earned: 11119
Accountant Community AllStar
Advisory council of Accountant community power users.
02/04/12 10:59am PST
Were the personal returns of all the shareholders filed timely? If so, you could appeal based on Rev Proc 84-35. It's intended for partnerships that file late, but twice I've cited it in the case of late S Corp filings, and the penalties both were waived.
Morons. I've got MORONS on my team. Nobody is going to rob us going DOWN the mountain. We have got no MONEY going DOWN the mountain. When we HAVE GOT the money, goin' back UP the mountain, THEN you can sweat.
02/04/12 5:53pm PST
Always good to learn what works. Thanks Archie! I've learned something.
Amy-in-PA
Questions asked: 93
Questions answered: 6487
Points earned: 14389
Questions answered: 6487
Points earned: 14389
Accountant Community AllStar
Advisory council of Accountant community power users.
Allstar
Advisory council of community power users.
02/04/12 11:03am PST
Someone on this thread mentioned $195/month. I thought it was $195/month per shareholder. That might make it add up to big bucks in practically no time, if you have a lot of shareholders.
Back up before it's too late. For a professional answer, call Tech Support at 1-800-933-9999 (Lacerte)(other numbers ProSeries, QB, or TurboTax). I am a volunteer, not compensated or supported by Intuit.
02/07/12 10:37pm PST
$195 per month per shareholder. I have 3 shareholders. That equates to $4k in 9 months late.
tilt53
Questions asked: 358
Questions answered: 8783
Points earned: 26133
Questions answered: 8783
Points earned: 26133
Accountant Community AllStar
Advisory council of Accountant community power users.
Intuit Moderator
Mod/Co-mod
02/04/12 11:11am PST
Gee, let me go out on a limb here and guess that DPA did his return on TT instead of using a professional preparer. Amazing. But, doesn't TT guarantee the accuracy of all their calculations? Oh wait. You mean we actually have to file and pay on time? No one told us that.
Hail Cleo-Cat-Tra, Queen of Denial. I didn't do it.
For a professional answer you might want to ask this question of a paid support person at Intuit Tech Support (800-434-6818). Volunteers are not compensated or supported by Intuit.
For a professional answer you might want to ask this question of a paid support person at Intuit Tech Support (800-434-6818). Volunteers are not compensated or supported by Intuit.
02/04/12 11:15am PST
But a person can save money by preparing their own tax return. I'm sure he could never have found a tax preparer to prepare that return for under $4,000 so I'm sure he is still money ahead after paying the penalty.
02/07/12 10:43pm PST
Actually I am guilty of being late filer, and no I did not use TT because even TT is a rip off for $149 for federal and another $100 for State. SCorp return is so simple and need no software nor CPA.
