13250: 1120 - Interest and Late Filing Fees

Drake Tax does not include a place to enter information to calculate interest and late filing fees for a corporate return. See the Instructions for Form 1120 for information regarding these charges. There are different penalties that may be assessed by the IRS for late filing or payment. Per the 1120 Instructions: 

Late Filing Penalty

"A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $450."

Late Payment Penalty

"A corporation that does not pay the tax when due may generally be penalized 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax."

Estimated Tax Penalty 

See Related Links below for details.