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Partnership 1065, Notice CP162, Late filing

archa5
Level 2

It was a final return of the partnership and I showed the end of the year as November 18, 2020.
I have filed an extension for the partnership March 10 by certified mail and was sure that everything is fine. Shortly, after filing the extension on  March 19, 2021 I have filed the return. 
IRS issued a notice for penalty of $840 stating that the return is 2 months late (partnership 
had 2 partners). They say that I were suppose to file the extension  February 15, not March 15,
due to the short year of the partnership.
Is there any way to argue with them about this penalty.
Thank you for any advice.

ac

 

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7 Replies 7
sjrcpa
Level 15

Reasonable cause.

First time abatement.

All income was reported by the partners on their timely filed tax returns.


ex-AllStar
PATAX
Level 10

Sound advice from sjr

sjrcpa
Level 15

IRS is correct. Partnership returns are due the 15th day of the 3rd month after the year end. Frequently  this is March 15, but not always.


ex-AllStar
DTNY07
Level 5

I had that issue with an S corporation almost 20 years ago when i was first starting out.  Yes, they are correct.  The extension had to be filed within 2 1/2 months after the closing date.  If the partnership didn't have that type of penalty in the past 5 years, you should be able to get it waived.  Or you can use the first time penalty waiver (if they haven't had that before)

archa5
Level 2

Thank you guys for your help.
Another situation: let say that the partnership's return showed the end of the year the June 2021.
How the 2 1/2 after the clothing date rule would work in these situation? 
Shouldn't we go back to understanding: " Generally, ........it is the 3rd month of the calendar year next 
to the year of final return?"

 

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sjrcpa
Level 15

It works the same way. Due date would be September 15, 2021.


ex-AllStar
qbteachmt
Level 15

"Another situation: let say that the partnership's return showed the end of the year the June 2021"

You are confusing two different things: End of Year (fiscal) and Short Year (special reporting).

The IRS explains it to you here:

https://www.irs.gov/businesses/small-businesses-self-employed/tax-years

 

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