Partnership Failure to File Penalty – Paul Gaulkin CPA

PartnershipA partnership that fails to file a completed return on time, including extensions, is subject to a penalty for their violation of IRC Sec. 6698. The penalty will equal $195 per partner, per month or part of a month (up to 12 months) that the return is late.

Partnership Failure to File Penalty

This can become very expensive if there is a large amount of partners within the partnership. If there are 100 partners, the penalty would be $1,500 per month until the return is file completely.

The penalty can be waived by the IRS if the partnership is able to show that there is a reasonable cause for the failure to file a complete or timely return. This penalty also applies to corporations that choose Subchapter S status and fail to file a complete return on time.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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