[SuperAccountingGod]

“Manny, Moe, Matilda, and Shep are partners in a manufacturing business. The partnership is on a calendar tax year. They were so busy making money that they forgot to file their year 16 personal and partnership tax returns on a timely basis. They finally filed them on June 30, year 17. What is the correct penalty the partnership will be assessed for late filing of the partnership return?

Incorrect A.
$195 per partner times three months

B.
$195 per partner times two months

C.
$195 per partner times four months

D.
Penalties are assessed against the partners, not the partnership

The correct answer is C. A domestic partnership must file Form 1065 by the 15th day of the 3rd month following the date its tax year ended. The partnership return was due on March 15, year 17. The penalty for late filing is $195 per partner for each month, or part of a month, that the return is late, up to 12 months. The total penalty in this case would be $3,120 ($195 × 4 partners = $780; $780 × 4 months = $3,120).”

I’m not sure why it is 4 months instead of 3. Is it because it is counting March is a full month? Thanks.

AUD - NINJA in training

BEC - NINJA IN TRAINING

FAR - 74

REG - NINJA IN TRAINING

[Recked]

Month or part of a month.
March 15
1-Apr 15
2-May 15
3-June 15
4-July 15
4 months (or part of a month, 1 day = late a month)
If they filed by June 15th it would only be 3 months. Devil is in the details.

Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)

FAR-93 11/9/17 (10wks, 250 hrs, Roger 1800+ MCQs, Gleim TB 600+MCQs, SIMs)
AUD-88 12/7/17 (3 wks, 85 hrs, Roger 1000 MCQs no SIMs hail mary)
REG-96 1/18/18 (6 wks, 110 hrs, 1400 MCQs, no SIMs)
BEC-91 2/16/18 (4wks, 90 hrs, 1240 MCQs)

[SuperAccountingGod]

I thought so. Thanks.

AUD - NINJA in training

BEC - NINJA IN TRAINING

FAR - 74

REG - NINJA IN TRAINING

[Author]

Replies