What is the late filing penalty for S Corp?
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Last modified 3/3/2023 1:25:11 AM EST |
Added by ExpressExtension Team
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For S corporation, filing an income tax return late with no tax due, the late filing penalty is $205 per month or for any portion of a month, the return is late multiplied by the number of shareholders in the business.
If they owe any taxes, an additional 5 percent penalty is imposed on the unpaid tax for each month or portion of a month the return remains unfiled.
The penalty for late filing is regardless of whether the business has made a profit or loss. Even if the business doesn't owe any tax, the late filing penalty applies.
So, if you're looking to extend your tax filing return due date, file form 7004 on or before the original due date of the return and get an extension of up to 6 months.