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The first thing you should do is file your return as soon as possible. Not filing an extension can result in penalties – a failure to file penalty to be exact (failure to pay penalty is an entirely different penalty).

A failure to file penalty is computed only on the net amount of tax due on the return. The penalty is 5% for each month (or fraction thereof) during which the return is not filed, up to 25%. If the return is not filed within 60 days of the due date, the penalty will not be less than the lesser of $135 or 100% of the tax due. For a partnership or S corporation return, the late filing penalty is $89 for each month the return is late multiplied by the total number of persons who were partners in the partnership/S Corp during any part of the partnership’s tax year.

There are situations where a penalty can be abated. Contact our tax professionals for information on how to abate a penalty.

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