This article will assist you with entering penalties paid by a corporation or S-corporation, such as payroll penalties or late filing penalties. Follow the instructions for applicable tax type below.
Follow these steps to enter penalties paid in the S-Corporate return:
- From the Input Return tab, go to Balance Sheet ⮕ Schedule M-1, M-3 ⮕ Schedule M-1.
- Scroll down to the Expenses Recorded on Books Not Included on Schedule K section.
- Locate the Nondeductible Expenses subsection.
- Enter any penalties or fines incurred by the S-Corporation during the year in the Penalties input field.
- Penalties include payroll tax penalties, late filing penalties, and any other nondeductible penalty or fine.
- The program prints a supporting statement and carries the amount to the following forms:
- Schedule K, line 16
- Schedule K-1, box 16
- Schedule M-1, line 3
- Schedule M-2, line 5, column (a) (AAA)
Follow these steps to enter penalties paid in the Corporate return:
- From the Input Return tab, go to Balance Sheet ⮕ Schedule M-1, M-3 ⮕ Schedule M-1.
- Locate the Schedule M-1 (Book-Tax Adj.) section.
- Locate the Expenses Recorded on Books not Included on this Return subsection.
- Enter any penalties or fines incurred by the corporation during the year in the Penalties input field.
- Penalties include payroll tax penalties, late filing penalties, and any other nondeductible penalty or fine.
- The program includes this amount on Schedule M-1, line 5d and prints a supporting statement.
