Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Retirement Plan late payment penalty tax deductible or not

Highlighted
Level 4

Hello,

Is Retirement Plan late payment penalty for corporation tax deductible? I did some research and found that tax penalties are not tax deductible. But what about retirement late payment penalty?

Thank you!

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 15

Paid to US Treasury = penalty, nondeductible.


ex-AllStar

View solution in original post

7 Replies 7
Highlighted
Level 15

Is this penalty really earnings on the amount that should have been timely contributed?


ex-AllStar
0 Cheers
Highlighted
Level 4

i think it is the penalty on the late retirement plan payment that should have been timely contributed

0 Cheers
Highlighted
Level 13

Who assessed the penalty: Plan sponsor, DOL, IRS?

Was this a late deposit of Employees' contributions?

Was it late along with the form filing?

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers
Highlighted
Level 4

it is paid to united state treasury. i am looking at their bookkeeping, so not sure if it was late along with the form filing. 

0 Cheers
Highlighted
Level 15

Paid to US Treasury = penalty, nondeductible.


ex-AllStar

View solution in original post

Highlighted
Level 13

Likely excise tax:

https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-you-have-not-timely-deposited-employee-e...

 

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers
Highlighted
Level 4

Okay! Thank you.

0 Cheers