14117: 1120S - Late Penalties

There are two late penalties that may be incurred with regard to Form 1120-S: 

• Late Filing 
• Late Payment of Tax

Note: Interest is also charged on taxes paid late, even if an extension of time to file is granted, and on penalties imposed for failure to file, negligence, fraud, etc.. 

Late Filing​

A penalty may be charged if the return is filed after the original or extended due date of the return as follows:

• "For returns on which no tax is due, the penalty is $220 for each month or part of a month (up to 12 months) the return is late or doesn't include the required information, multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year for which the return is due.
• If tax is due, the penalty is the amount stated above plus 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 of Tax

"A corporation that does not pay the tax when due, generally, may 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."

For more information about late penalties and interest, see the 1120-S Instructions. The penalty is not calculated in Drake Tax.