What late penalties are there for an 1120S?
There are two late penalties that may be incurred with regard to the 1120S:
- 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..
A penalty may be charged if the return is filed after the original or extended due date of the return as follows:
- If no tax is due, the penalty is $205 for each month or part of a month (up to 12 months).
- If tax is due, the penalty is $205 for each month or part of a month (up to 12 months), 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 $210.
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.