Sullivan & Company - Certified Public Accountants 4709 Montgomery Lane #201 - Bethesda, MD, 20814 Phone: 301-657-8080




Paul Sullivan, CPA

Sullivan & Company


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- Late Filing Penalties for S-Corp, Partnership Returns
- Advantages of Keeping Good Records
- Do You Qualify for the Earned Income Tax Credit?
- College Tax Credit - It's Not Too Late!

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Late Filing Penalties for S-Corp, Partnership Returns


Penalties for S-Corps, Partnerships, and Fiduciaries failing to file returns have been steadily rising, but starting in tax year 2010 penalties for S-Corp, Partnership, and Fiduciary filing late returns increased to $195.

The IRS states that for returns on which no tax is due, the penalty is $195 for each month or part of a month (up to 12 months) the return is late multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year for which the return is due.


The penalty may also be charged if the return does not show all the information required.

For example, if a S-Corporation fails to file its 2010 return (including a Schedule K-1 to each shareholder) on time the penalty could be as much as $2,340 per shareholder per year ($195 per shareholder for the maximum of 12 months).

These failure-to-file penalties do not include tax that is due or penalties for tax that is due, but not paid on time. Add in the fact that the penalty isn't tax deductible on your tax returns the following year and you've got yourself a double whammy.

If the partnership or S-corporation can show that the failure to file on time was due to "reasonable cause", the IRS might provide relief. Be advised however, that if the partnership or S-corporation has established a pattern of failing to file in the past, it's unlikely that the IRS will be sympathetic.

Why take a chance? If you need assistance filing your S-Corp, Partnership, or Fiduciary return, call us today.




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If you have any questions about S-Corp, Partnership, or Fiduciary return, please give us a call at 301-657-8080.



As always you can call our offices if you have any questions about these or any other accounting, tax, financial planning or insurance related issues, at 301-657-8080. 


Regards, Paul Sullivan, CPA

President, Sullivan & Company





Sullivan & Company, CPAs | 4709 Montgomery Lane | Bethesda, Md. 20814 | email:

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