Late filing notice

[Setsun]

I received a late filing notice for my 1120S.  I have an email from intuit stating the IRS was accepted by the IRS on July 14.  When I spoke to the IRS, the agent stated they received the return on August 4.  Aside from the email, can intuit help me resolve this or provide further documentation regarding the tax file submission?

[tagteam · Accepted solution]

Unless you filed an extension (Form 7004), the return for your S corporation was due March 16th.

See https://www.irs.gov/instructions/i1120s#idm139641016916032

Unlike returns that were initially due on April 15th and extended due to the pandemic, the due date for returns due prior to April 15th (e.g., Forms 1120-S and 1065) was not extended.

[Critter-3]

You can beg forgiveness of the penalty if this is your first time filing late by responding and asking for the abatement using the "I was stupid and did not pay attention that the personal covid extension was not also for businesses" excuse ... say you are sorry and you will never do it again ... usually they will abate the penalty for first time errors. 

[Setsun]

The point is that I did file on time.  Deadline was 7/15.  I filed 7/14.  The IRS is saying they didn't receive it until August.

[tagteam]

@Setsun You did not file on time; your 1120-S was due March 16th (there was no extension for COVD-19 for that type of return).

[Setsun]

Are you sure?  

Taxpayer Relief for Certain Tax-Related Deadlines Due To Coronavirus Pandemic | Internal Revenue Ser...

[Critter-3]

The 1120-S return was due on 3/15/2020  ... so if you did not put it on extension by 3/15  (which got you to 9/15 to file)   then you have filed LATE.  The IRS is correct.   

Only  returns that had a 4/15/2020 due date were extended to July  on 3/23/20 ( 8 days after your return was due)  but they did not apply to returns that should have already been filed or on extension. 

Per the IRS:   

The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.

 https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020#:~:text=The%20Treasury%20Depa....

[Critter-3]

@Setsun 

Read this line :   One significant change postponed the deadline to take certain actions. If the deadline for these actions fell on or after April 1, 2020, through July 14, 2020, the deadline has been extended to July 15, 2020. This includes, but is not limited to, the following.

Your S-corp return was due 3/15 ... it was not included in this extension.  By 3/23 when they issued this notice you were already late if you did not file an extension. 

[Setsun]

yikes?  thanks for clearing this up.  If I can ever get thru the IRS phone line, I'll beg for forgiveness.

[Critter-3]

Not by phone ... respond to the notice in writing and be polite and contrite. 

[Anonymous]

NO.  the deadline for an unextended S-corp (as well as other calendar year returns for C-Corps, Partnerships, and Estate and Trusts) was not changed for Covid. It was 3/16/2020.  if you filed an extension on or before 3/16/2020 then you would have had until 9/15/2020 to file. your return is late. ask for abatement or pay the penalty. 

most likely the same rules will apply for the 2020 S Corp return

[tagteam]

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@Anonymous wrote:

NO.  the deadline for an unextended S-corp (as well as other calendar year returns for C-Corps, Partnerships, and Estate and Trusts) was not changed for Covid. It was 3/16/2020. 

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That is part of the reason this is so confusing; returns that were due on April 15th (or later) were extended while those due prior to April 15th were not extended.

Calendar year returns for C corporations (Form 1120) and estates/trusts (Form 1041) were due on April 15th and those dates were extended.

[Critter-3]

Which is why the "I didn't understand" excuse for abating the penalty will probably work for all new businesses that were confused by the wording ... it all came down to due dates not the word corporate in the ruling. 

[Setsun]

Thanks to everyone for this discussion.  Hope you have a great and Happy Thanksgiving!

[Raeka]

Today I received a notice with a bill for $1260 stating I didn't file an extension. I DID file an extension but Turbo Tax for some stupid reason won't let you E-FILE your 1120S extension as you can with your personal return extension. Another reason to hate TT for business! I filed it March1st as paper filing - the only way you can with TurboTax and IRS is so backed up they have not processed it but have processed my e-filed return. Why won't TurboTax let you E-file your S extension?! If I can't PROVE I mailed it, and they don't process it, I guess I'm screwed! Thanks a lot Turbo Tax.