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IRS late filing penalty for partnership

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rated:
Maybe a little esoteric, but FWIW --

I am the tax matters partner for a small partnership I have with a couple of family members.  This year, I forgot that the new due date is March 15.  The 2016 return was filed in April 2017, and the IRS has already sent a penalty notice for approx. $900 ($195 per partner, times months/portion thereof late).

Luckily, there is Rev. Proc. 84-35, which provides grounds for abatement.  To qualify, the partnership has to have 10 or fewer partners, each of whom gets a "straight up" allocation of partnership income/deductions, and each of whom included those items on their own timely-filed individual returns.  The rev. proc. plainly says that the late filing penalty "will not apply" if the stated conditions are met, regardless of when the partnership return is actually filed.

I think it sucks that the penalty notice received from the IRS doesn't mention Rev. Proc. 84-35, doesn't suggest that taxpayers see if they qualify, etc.  They're clearly trying to strong arm DIY taxpayers or ones that don't have knowledgeable preparers.  Anyway, hope this tidbit helps someone.

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rated:
It's not the IRS's job to tell you exactly how to get out of paying fees.

It was their job to tell you to file on time. That's about it.

rated:
forbin4040 said:   It's not the IRS's job to tell you exactly how to get out of paying fees.

It was their job to tell you to file on time. That's about it.

  IRS official mission statement:  "Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all."
I am one of those naive people who think:  if you're going to have a mission statement, you should live up to it.  I would say "helping them understand" includes at least mentioning that there's a simple way to avoid the penalty that's being assessed.

rated:
That's why I said 'paid on time'
No one, including the IRS can make a full statement that shows all the 'paths' you can take after you don't pay on time. And no one who is on the 'other' side will be 100% convinced that they did their utmost to help them.

While I think they are run by a bunch of untrained monkeys, paying on time is definitely one of things they remind people constantly of.

Look at the other threads in finance, there's a guy who complaining about the definition of 'grass', and 'tires'.  Do you really think the IRS can produce a document that can satisfy those kind of people?  

rated:
Well partnership returnsare more about filling in time than paying on time. April 15th is still the pay by date.

I'm in a partnership that also missed the change in date this year.  They waived the penalty.

rated:
I missed the new March 15 deadline by a few weeks but filed before April 15, and when I received letters from the IRS and New York State asking to pay penalties, I simply called each one, and they were both willing to waive the penalty. I'm sure a significant number of LLCs and partnerships were not aware of the new due date this year, so the tax agencies are probably somewhat lenient this year. I doubt you will be able to get the penalties waived so easily next year.

rated:
You can also remember to file for an extension.

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I submitted a form for request for payment of penalties for a similar reason last year. About a month or so later I called the IRS and spoke with someone and they were very helpful and nice and they waived the penalties. They stated they had not received the letter for abatement.

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