Tax Penalty!

If you filed certain 2019 or 2020 tax returns late and were penalized for late filing those penalties shall be automatically dropped by the IRS.

Furthermore, if you file 2019 & 2020 returns that have not yet been filed by end of September, there will be no late filing penalties.

There could still be late payment penalties if taxes were due.

This applies to 1040, 1120 (C-Corporation), 1120-S (S-Corporation), 1065 (Partnership, most multi-member LLCs), 990-

T (UBIT returns) and a slew of other more obscure returns.

This is a big, big deal. Even if you owe no money, filing late is expensive, especially with entity returns. For example:

An LLC has 5 members. The penalty for late filing is $210 per member, per late month, for up to a year. That's $1,050 per month of lateness up to $12,600 for the year. That's a hit well worth avoiding.

So for those of you who are late on 2019 or 2020 (including UBIT) returns or know someone who might be (entrepreneurs procrastinate a lot on "admin"), get those returns filed ASAP.

Need help Contact us at (562) 281-1040.