Remember to file either your corporate tax returns or file for an extension - TODAY!Corporate tax returns are due March 15th. The late filing penalty (which also applies if it does not include the required information) amount for an S-Corporation return is $195. This penalty is calculated based on the total number of shareholders during any part of the tax year multiplied by each month-or partial month-the return is filed after the due date, or extended due date (up to 12 months). If the return is properly extended, the return is due September 15th. If tax is due, the penalty is the amount stated above plus 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. If you don't file AND don't extend the return, it is late!
Another note: For each failure to furnish Schedule K-1 to a shareholder when due and each failure to include on Schedule K-1 all the information required to be shown (or the inclusion of incorrect information), a $100 penalty may be imposed with respect to each Schedule K-1 for which a failure occurs. If the requirement to report correct information is intentionally disregarded, each $100 penalty is increased to $250 or, if greater, 10% of the aggregate amount of items required to be reported.
The same penalty applies for partnership returns. The normal deadline for partnership returns is April 15th. In 2012, it's April 16th. Partnership returns may be extended until September 15th. Make sure that you note this extended due date. It used to be October 15th.
The penalty will not be imposed if the corporation can show that not furnishing information timely was due to reasonable cause. There is no telling what the IRS will consider reasonable cause, but it doesn't hurt to try!
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