Wednesday, December 31, 2014

Penalty for failure to file partnership returns is increased for inflation

Any partnership that fails to file a timely return or fails to provide the information required  by Code Sec. 6031 is liable for a monthly penalty equal to $195 times the number of persons who were partners during any part of the tax year, for each month or fraction of a month for which the failure continues. No penalty can be assessed if it is shown that the failure is due to reasonable cause.

New Law. Under the 2014 Achieving a Better Life Act (ABLE Act), for any return required  to be filed  in a calendar year beginning after 2014, the $195 dollar amount will be increased by the dollar amount multiplied by the cost-of-living adjustment determined under Code Sec. 1(f)(3) determined by substituting calendar year 2013 for calendar year 1992 in Code Sec. 1(f)(3)(B), and rounded down to the next multiple of $5. (Code Sec. 6698(e) as amended by 2014 ABLE Act §208(d)DivB) To view our YouTube video click here http://youtu.be/KfO0_kmz7qc

If you would like more details about this decision or any other aspect of the S corporation law, please do not hesitate to contact.
Amare Berhie, Senior Tax Accountant

(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396

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