Q: I am late filing my business return. What is the penalty?
A: The penalty for a late 1120S & 1065 is $195 for each month multiplied by number of shareholders. So, if there are 5 partners or shareholders and the tax return is 6 months and a day late the penalty is $6,825 (5 partners x $195.00 x 7 months). Why 7 months you may ask? One day over counts as a full month.
