Late Filing 1120S

[Terry D EA]

Have an S-corp client that has not filed for 2011. I just found out after a phone call yesterday that there were medical issues surrounding not filing. Has anyone witnessed the IRS assess late filing or failure to file penalties and if so, what might this S-Corp be facing. They usual file late every year and I have never seen any notices or penalties assessed. They do drive me nuts but this time I can understand.

[rfassett]

$195 per shareholder per month late. That is the late filing penalty. Since they are chronic late filers, if in fact they are, I would not hold out much hope of getting the penalties abated.

[Terry D EA]

Thanks for the reply. I was afraid that was what the penalty would be. Really isn't my problem and if they get assessed then I hope they learn from it.

[Jack from Ohio]

A simple phone call from them could have netted an extension... No excuse. Even with medical issues, someone could have made a 5 minute phone call.

[rfassett]

A simple phone call from them could have netted an extension... No excuse. Even with medical issues, someone could have made a 5 minute phone call.

You are being too generous Jack. My calls usually go like this: hello, Ron speaking. Client says "yeah, what's up? I need an extension." Me: " OK, we will get it done. Thanks! " Client "OK - Later!" That conversation takes 20 seconds at most. But I do have to admit, after I hang up, I always hope the client was talking about his tax return. :)

[Terry D EA]

This was extended until Sept 15, 2011 but as I said, never heard from the shareholder.

[rfassett]

I do have a client like this. She actually has two S-corps and thinks filing 13 months after the deadline is current filing. This has ben going on for years. She sent me a package of notices last week which included a note saying she is trying to get the 2011 information to me in the next couple of weeks. She lost an adult son a month ago as the result of a brain tumor. Am I compassionate? Absolutely. But the 2011 return was due long before her son was diagnosed. Ours can be a very difficult business at times.

[grandmabee]

to get the penalty abated do you call as the preparer or do you write a letter that the client signs or do you sign the letter. I just got a late one and want to try for an abatement.

thanks

[rfassett]

I have the client sign a power of attorney and I request the abatement via e-services.

[Terry D EA]

<<<<<I do have a client like this. She actually has two S-corps and thinks filing 13 months after the deadline is current filing.>>>>>>

Has she been penalized by the IRS for these late filings? My client has filed late for the last three years and well after the extension but to the best of my knowledge has never been penalized. Slipped through the cracks maybe???

[rfassett]

Oh yeah, she gets them. And I do not spend a moments time on them. I just tell her to pay them.

[ILLMAS]

You are being too generous Jack. My calls usually go like this: hello, Ron speaking. Client says "yeah, what's up? I need an extension." Me: " OK, we will get it done. Thanks! " Client "OK - Later!" That conversation takes 20 seconds at most. But I do have to admit, after I hang up, I always hope the client was talking about his tax return.

I always find it funny when a client says what do you want, or I had one say to me once let me holla back at you, translation let me call you back when I am not busy, my time is more important than yours.

[JohnH]

There are times when their time is more important than yours at a given moment, and there are also times when your time is more important than theirs for the same reasons. That's why I like email so much - it is far less intrusive on everyone's time.