1120 will be late

[David]

Client will not have final information for me to prepare his 1120 until next week. The corporation has a NOL carryforward and will have a loss for 2013 as well.

 

Based on my research, there shouldn't be a penalty for late filing since the corporation doesn't owe.

 

Is my understanding correct on this? I'd hate for the client to be assessed a penalty and I didn't warn them.

 

Thanks.

 

 

[Jack from Ohio]

Client will not have final information for me to prepare his 1120 until next week. The corporation has a NOL carryforward and will have a loss for 2013 as well.

 

Based on my research, there shouldn't be a penalty for late filing since the corporation doesn't owe.

 

Is my understanding correct on this? I'd hate for the client to be assessed a penalty and I didn't warn them.

 

Thanks.

WRONG!! No exceptions for filing late for Corp, S-Corp, Trusts or Partnerships. Late filing penalty will be assessed and they are quite steep. Maybe his paying them will motivate him in the future>

For all those that will say write a letter, that has stopped working. Had 3 last year. First time late for all three. Letters were rejected. Penalty enforced.

[JohnH]

There will be no late filing penalty assessed  for a C corp showing no tax due, except for the $135 penalty if it's over 60 days late.

.

But it's a vastly different story for an S corp

[jklcpa]

Generally, for a C corp return with no tax due the late filing penalty won't be assessed (minimum penalty is $135 or 100% of the unpaid tax) if the return is filed within 60-day of the due date or extended due date.  If you get it done and filed in the next 60 days, there shouldn't be any late filing penalty.

 

See 3rd paragraph "Late filing of return" that references the extra 60 days beyond the due date or extended due date:   http://www.irs.gov/instructions/i1120/ch01.html#d0e721

 

Numbers 4 and 7 here also reference the 60 days :  http://www.irs.gov/uac/Failure-to-File-or-Pay-Penalties:-Eight-Facts

[Randall]

If it's the client's fault the return is late, the penalty is their problem, not mine.

[Lee B]

I filed a C Corp with a loss about 55 days late last year and there was no penalty.

[SFA]

Check the regulations for your state. PA now has a $400 no exceptions penalty.