Tax Filing Penalties to Increase
We’ve all heard “no new taxes” in campaign speeches throughout the years, but how is the governemnt planning to pay for some of the breaks being offered to individuals? By increasing fees and penalties paid by small businesses! The latest example of this trend is the late filing penalties for S Corporations and Partnerships. S Corps are due 3/15 each year, and 9/15 if a proper 6-month extension is filed. Partnerships are due 4/15 each year, and 9/15 if a proper 5-month extension is filed. If you file after that, the penalty is increasing to $195 per shareholder per month, which is quite an increase over the $50 per shareholder fee that existed only 2 years ago. Of course, you can avoid thees penalties by filing on time, but I don’t think this is the end of fees being assessed and increased in the near future.
