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What are acceptable reasons the IRS will use to waive a late filing fee for a s-corp.

Gilbert, AZ |
Filed under: S-corporation Business

The scorp filed for an extension but apparently the form was not received in time, The IRS has sent a 1179.00 fine for 5 months for filing late. What are the chances they waive this fee for a company that has no history of late filing? The back of the form does say write the IRS with an "acceptable reason" why the return was late.

Attorney Answers 3


  1. Best answer

    You must show "reasonable cause" for the IRS to waive the penalty. An extension is timely filed if it is put in the mailbox on time, not when the IRS receives it. You need to write a letter to the IRS indicating that you filed the extension on time (if you did) and attach a proof of mailing if you have it. You should always file an extension by certified mail return receipt requested.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.


  2. Mr. Lively offers sound advice. Write a letter explaining that you did in fact file for the extension, that you have always filed timely and that you filed late but within the extension perioud. Finally, it is a good idea to file the extension electronically, then you are not at the mercy of the mail service.

    Hope this helps. If you like this answer and have a Google account , please hit the +1 sign above. It takes just a second to do this and it would be most appreciated and would help others. Thanks.
    Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website is www.sjfpc.com. and his blog is

    LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.


  3. You have to show a "reasonable cause" in order for the IRS to waive the penalty. The important factor is when you mail the extension, not when the IRS receives it. You should write a letter to the IRS indicating that you filed the extension on time and attach a proof of mailing, such as a certified mail return receipt.

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