Our LLC filed late for 2015 and we paid a $780 tax penalty in 2016...on the 2016 1065 form where do i enter this?

[j_disabato]

Believe my question is clear.

The 2 partnership LLC paid the $780 tax that was penalty for the late filing of the 2015 1065 form.

[TaxGuyBill]

If you fill out the Balance Sheet (Schedule L), that penalty will have affected your 'books' on the Balance Sheet.  The adjustment for 'book' income to 'tax income' would be made on Schedule M-1.

[SweetieJean · Accepted solution]

You cannot deduct IRS penalties.