No similar Congressional discussion of exempting similarly small S corporations from late filing penalties exists. That provides that there are no late penalties for partnerships of ten or fewer partners, if all of the partners timely report the income. Accordingly, the Service has set forth procedures for applying Rev. The American Society of Pension Professionals & Actuaries is a non-profit professional society. Section 9.08 is modified to provide that, in order to request a determination on leased employees, taxpayers should attach a cover letter to Form 5300 in addition to the information contained in section 17. The procedure rather clearly notes that it was issued to comply with the Conference Committee report discussion related to small partnerships. The partnership is not subject to the consolidated (unified) audit procedures under I.R.C. 84-35 and reasoned that partnerships having a trust or corporation as a partner, tier partnerships, and partnerships where each partner's interest in the capital and profits are not owned in the same proportion, or where all items or income, deductions, and credits are not allocated in proportion to the pro rata interest, do not come within the exception of section 6231(a)(1)(B) and, as such, are not covered by Rev. Each partner has filed their individual tax return on time and reported their distributive share of partnership items. The Rev Proc 84-35 is an IRS Penalty Abatement that allows for the automatic penalty abatement for any organization whose partners or LLC/LLP members file their personal taxes on time (by May, or if filed for an extension, by October). It's only available the first time a company makes such an error. Throw into the mix all of the legalities of partnership taxes, and you could be looking at a situation that it a lot more difficult and time consuming than you had originally thought. Likewise, tax attributed to these items will be assessed and collected at the partnership, rather than the individual, level. 6221 through I.R.C. The Rev Proc 84-35 is available to you as long as you meet the above criteria. Proc. The first way is to apply before the penalty is ever assessed. However, Rev. It is also published in the Internal Revenue 4256 N Arlington Heights Road, Suite 104, Arlington Heights, IL 60004, Call For Your FREE No-Obligation Meeting (847) 749-1851, Copyright Evolve Financial Group 2013 | All Rights Reserved |, Illinois Small Business Job Creation Tax Credit, Net Operating Loss: Carryback and Carryforward Provisions, Illinois Extends Tax Filing Deadline, Announces Small Business Assistance, Paycheck Protection Loans: Important News for Small Businesses During COVID-19, Individual Stimulus Checks: What to Expect, 2019 Tax Filing Deadline Extended to July 15, 2020, The partnership must be a domestic partnership, The partnership must have 10 or fewer partners (husband and wife and their estate count as one), All partners must be natural persons (other than a nonresident alien) or an estate of a deceased partner, Each partners share of each partnership item has to be the same as their share of every other item, All partners need to have filed their income tax returns timely, All the partners need to have full reported their share of the income, deductions, and credits of the partnership on their timely filed income tax returns, As long as all of these requirements are met, and you have submitted a letter to the IRS regarding the matter that looks like.
