Any S corporation that fails to file a
timely return or fails to provide the required
information is liable for a monthly penalty equal to $195 times the
number of persons who were shareholders in the S corporation during any part of
the tax year. No penalty can be assessed if it is shown that the failure is due
to reasonable cause. FTC 2d/Fin ¶V-1750; FTC 2d/Fin ¶V-1763.1; USTR ¶66,994.
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 (discussed above) 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. 6699(e) as amended by 2014 ABLE Act
§208(e)DivB)
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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