Tomorrow is Last Day to File Corporate Returns…Ante Up or File Extension.

If you don’t have all your ducks in a row, don’t worry too much. You can always file a corporate return extension, BUT remember that filing an extension does not give you more time to pay what you owe. Penalties and interest will accrue, and those amounts are nothing to joke about.

Corporate tax returns that get rejected will have 5 more days to refile and get accepted before any penalties will be levied.  For both the corporation and shareholders the penalties for filing late are steep.  Shareholders run the risk of receiving a $100 fine for being untimely. If the untimeliness boiled down to an intentional disregard, that fine could jump to $250 or 10% of the aggregate amount of items to be reported (the greater of the two).  For corporations,the penalties are $195, per number of months late,  then multiplied by the number principles in the corporation. That’s only if the corporation owes zero tax.  If the corporation owes tax, add 5% of the tax to the total per month late, up to 25%.

Posted: March 14, 2013

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