Penalty per Partner

[Corduroy Frog]

What is the penalty (per partner) on a 1065 for late filing nowadays?  Since there is usually no tax, any such penalty would have to be assessed based on # of partners as opposed to tax liability.

[Lion EA]

Is it still $195 per partner per month for as many as 12 months? For small partnerships (10 or fewer partners) use Rev. Proc. 84-35 if it applies to your situation.

[Corduroy Frog]

Thank you Lion.  Excellent information.

[jklcpa]

It's now $210 per partner per month for a max of 12 months.

[Lion EA]

Thanx, Judy. I thought it went up, but a quick search still showed the old penalty.

[Sara EA]

The penalty is indeed based on the number of partners, not the tax liability (partnerships usually pay no federal income tax).  It can be waived using the first-time penalty abatement.  Be sure it's a first timer.  I had a partner once who was chronically late, got hit with a penalty, and to appease him I wrote a letter asking for the first-time abatement.  I knew he wouldn't get it, and he didn't.  After that year he got his docs to me well before Oct 16 (now that would have to be Sept 15)!  Be aware that no penalty if they file an extension, but if they miss the Sept 15 deadline the penalty is assessed back to March.