Question

Small partnership penalty relief

Forum|Forum|2 years ago
November 23, 2023
1 reply
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My wife and I own a partnership together and we are 50%/50% partners. We were 7 months late fling our partnership and we received a letter which states we owe over $3000 in penalty. The letter has ways to get penalty relief. The first one is Small Partnership Penalty relief which says if you meet 5 criteria you qualify for the relief. We meet all the criteria except I m not sure about one which says 'Every partner filed a timely income tax return.' We filed an extension for our income tax return and filed the taxes before the extension due date. Does that still qualify as timely income tax filing?

If it does then we meet the criteria and my next question is what is the way to apply for this type of relief? Letter, phone call or what?

Thank you

Not A Product Question

M

Mike9241

a valid extension and subsequent filing of the return on or before the extended due date is a timely filed return.

If all of the conditions are met, you return the notice with your statement, signed under penalty of perjury, that you meet all the requirements to have the penalty removed for reasonable cause under the provisions of Rev. Proc. 84-35.