1120 late filing penalty when taxes are fully paid

A calendar year 1120 client. They already paid more than enough to cover year 2017 tax liability, but due to a minor issue, we missed the last week's 9/15 filing deadline.

I reviewed the late filing penalty clause, and it is 5% of unpaid taxes. So, when taxes are paid in full, will IRS assess any penalty for my client?

It depends on when the tax was paid.

If the tax was paid before the unextended due date (March 15 April 15), then there won’t be a penalty if the return is filed late. But if the IRS audits the return and there’s a deficiency, a late-filing penalty will be added.

If the tax was paid after the unextended due date, then there will be a late-filing penalty. See Estate of Liftin v. United States, 754 F.3d 975 (Fed. Cir. 2014).
https://www.leagle.com/decision/infco20140610152

I understood the implication clearly. Thank you, Dave.

A calendar year 1120 client. They already paid more than enough to cover year 2017 tax liability, but due to a minor issue, we missed the last week's 9/15 filing deadline.

I thought it was established the Secretary is overriding Sec 6081(b) as far as calendar year C Corps are concerned via the 7004 instructions?

Extended due date is 10/15?

https://www.thetaxadviser.com/news/2017 ... 16002.html

IRA Pub 509=2018 Tax Calendar -- pages 4 & 5 says calendar year C-Corp is extended until 10/15/2018. (Boy - when I first read this, it scared the C**P outa me for a moment!)

Ha, me too Joan.

Sorry for the happening, everyone. Calendar year C corp extended 1120 is due 10/15.

There is a minimum $135 penalty regardless

There is a minimum $135 penalty regardless

If you're referring to the last paragraph of sec. 6651(a) (reproduced below), it doesn't apply if the return is filed by the extended due date, which, as others have said above, is 10/15/2018. And by the way, the penalty under this paragraph was increased from $135 to $205 for calendar year returns filed after 2015. P.L. 114-125.

In the case of a failure to file a return of tax imposed by chapter 1 within 60 days of the date prescribed for filing of such return (determined with regard to any extensions of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under paragraph (1) shall not be less than the lesser of $205 or 100 percent of the amount required to be shown as tax on such return.

I do understand that dave829. I just wanted to point out that a delinquent return filed with no taxes due, will still incur the minimum penalty. (and I see that the min fee has gone up!)

I do understand that dave829. I just wanted to point out that a delinquent return filed with no taxes due, will still incur the minimum penalty. (and I see that the min fee has gone up!)

There is a minimum $135 penalty regardless

OP has a calendar year C Corp with a (presumably) valid extension. All tax was paid in.

OP's return is not delinquent (yet) as the extended due date is 10/15/18. There is no late filing penalty for OP as long as return is timely filed.

Rinse and repeat. I do know that C corps are due 10/15. thanks