IRS: Increase in Penalty for Failure to File a Partnership or S Corporation Tax Return

IRC Sections 6698 and 6699 imposes a penalty on any partnership or S corporation required to file an income tax return if (1) the return filed is past the due date, including extensions, or (2) the partnership or S corporation files a tax return with incomplete information.

Section 16 of the Worker, Homeownership and Business Assistance Act of 2009, Public Law 111-92, increases the penalty for failure to file partnership and S Corporation Tax Returns.

Section 16 of the WHBAA increases the current late filing penalty of $89 per partner or shareholder to $195 per partner or shareholder for each month (or fraction of a month) that the return is late up to a maximum of 12 months. The amendments made by Section 16 apply to returns for taxable years beginning after December 31, 2009.

Visit IRS.gov and Search WHBAA for more information.