Business Failure To File a Tax Return Penalty Frequently asked questions
We now have an FAQ list that we hope will help you answer some of the more common questions regarding Business Failure To File a Tax Return Penalty.
1. What is the Business Failure To File a Tax Return Penalty?
You had a legal requirement to file a return and you did not file it.
2. Is the penalty correct?
Usually yes, unless you have grounds to contest it.
3. What do you do?
- We contact the IRS.
- We request your record.
- We calculate your balance due.
- We check for unfiled taxes.
- We review all the data in your file.
- We will recommend which option is best.
- We will prepare the appropriate forms with the information you provide.
- We handle the contact with the IRS.
4. How much is it?
- 5% of the unpaid tax each month for up to 5 months with a maximum penalty of 25%.
- Form 1120: Minimum penalty is $435 or 100% of the unpaid tax if filed more than 60 days late.
- Form 1120S: $235 per shareholder per month for 12 months.
- Form 1120S: If tax is due, add 5% of the unpaid balance.
- Form 1065: $235 per shareholder per month for 12 months.
5. What did I do?
You had a legal requirement to file your federal tax return by a certain date, including extensions, and you did not file.
6. What information do I need to gather?
Tell us exactly what happened that tax year, or years, and gather all the documents related to the tax year(s).
We handle the rest.
7. How long does it take?
Depending on your file, information gathered, compliance, and resolution chosen.
It can take months. If we appeal, then add six additional months.
8. Will interest and penalties continue?
Yes.