Question

Does the IRS late filing penalty for a LLC start on 3/15? Ext was filed late and not accepted. Taxes accepted on 7/15. IRS is charging $1600 for 2 member LLC.

Forum|Forum|6 years ago
August 6, 2019
1 reply
0 views

Notice received as of 8/6 and seems to be calculated from 1/1 instead of the tax due date.

Rick19744

Employee

The late filing penalty for partnership tax returns (and LLC's taxed as a partnership) is $200 per month (including partial months) per member not to exceed 12 months. So based on your facts, the penalty looks reasonable.

While the facts of the late filing are not known, if you have a fairly good reason (reasonable cause) for the late filing, you could write a letter explaining the situation and ask for the penalty to be abated. If this is the first time, the IRS will generally give you a break.

If you do write a letter, make sure you send it certified mail return receipt requested.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Carl11_2

Employee

As an addendum take note that any accumulated interest on the late payment can not be waived by federal law. So while you may get late fees waived, you will still pay the interest on the late payment.