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

Asked about 3 years ago - Gilbert, AZ

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. Henry Daniel Lively

    Contributor Level 20
    Best Answer
    chosen by asker

    Answered . 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... more
  2. Patrick Camunez

    Contributor Level 8

    Answered . 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.

  3. Steven J. Fromm

    Contributor Level 20

    Answered . 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.

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    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... more

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