Congress Raises Tax Penalties
Failure to File Partnership Returns Will Be More Costly. The new law extends the period for charging the monthly partnership return failure-to-file-penalty from 5 to 12 months and increases the monthly per-partner penalty from $50 to $85. This change applies to partnership tax returns due after December 20, 2007. (Another unrelated new law increases this monthly penalty $1 to $86 per partner.)
Failure to File S Corporation Returns Will Also Be More Expensive. The new law imposes a monthly penalty for failing to file an S corporation return or failing to provide information required to be shown on the return. The penalty amount is $85 per shareholder per month up to a maximum of 12 months. This change applies to S corporation tax returns due after December 20, 2007.