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I have a penalty for late filing of partnership LLC tax

I have a penalty...

I have a penalty for late filing of partnership LLC tax returns and looking for examples of reasonable cause Reading about the FTA and checking if we could be eligible

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Registered LLC last year (2016), Made no income , filed 2016 tac returns in Nov and received a penalty of 195 per month of late filing

Accountant's Assistant: Is there anything else the Accountant should be aware of?

No Personal income tax of all partners has been filed

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Answered in 1 hour by:
12/6/2017
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,154
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and can help you out with this.

There is a first time abatement for partnerships as long as they meet a couple conditions. It is under Rev Proc. 84-35.

In order to qualify, the partnership must meet these criteria:

  • The partnership has to be a domestic partnership,
  • have 10 or fewer partners (husband and wife and their estate are treated as one partner),
  • all partners have to be natural persons (other than a nonresident alien) or an estate of a deceased partner,
  • each partner’s share of each partnership item has to be the same as their share of every other item,
  • all partners need to have timely filed their income tax returns, and
  • all the partners need to have fully reported their share of the income, deductions, and credits of the partnership on their timely filed income tax returns

If your LLC does meet the criteria, just write a letter to the IRS saying you are trying to get penalty abatement under Rev Proc 84-35 and then say that your partnership meets all the conditions listed above. The IRS will then automatically abate the penalty.

For reasonable cause, no income does not matter for the IRS. They look at things like advice from an accountant or lawyer or some tragedy that occurred that stopped you from filing.

Hope that helps. Let me know if you need anything clarified. If not, please leave a rating. Thanks!

Ask Your Own Tax Question

Hey! I just wanted to follow up and see if you had any other questions. If not, please leave a review. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,154
Experience: Adjunct Professor
Verified
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Category: Tax
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