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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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Today is 9/17, 2015. I just realized that I failed to file

Customer Question

Today is 9/17, 2015. I just realized that I failed to file an extension 7004 for my Corp client which has a fiscal year ending 6/30/2015. Can I file the extension tomorrow 9/18 without being pealized? the Corp does not owe any taxes.
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

Q: Can I file the extension tomorrow 9/18 without being pealized?

A: Is the corporation a C or an S corp? Please advise.

Expert:  Tax.appeal.168 replied 1 year ago.

Q: Can I file the extension tomorrow 9/18 without being pealized?

A: In brief, if you can show reasonable cause, possibly. The extension would have had to be filed no later than the due date of the return. As no extension was filed, if you own a C-Corp, this means that the return will be more than 60 days late. Since no tax is due, the IRS may charge you $135 for not filing on time. However, if you can show reasonable cause, you may not have to pay the $135. SEE BELOW:

A corporation that does not file its tax return by the due date, including extensions, may be penalized 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. The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $135. The penalty will not be imposed if the corporation can show that the failure to file on time was due to reasonable cause.

REFERENCE SOURCE:

1120 Instructions:

http://www.irs.gov/pub/irs-pdf/i1120.pdf

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The following applies to an S-Corp.:

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 or does not include the required information, 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. 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. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $135.

REFERENCE SOURCE:

S-Corp Instructions:

http://www.irs.gov/pub/irs-pdf/i1120s.pdf

Expert:  Tax.appeal.168 replied 1 year ago.

Do you require additional information? The system is prompting the question back to me. Please advise.

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