How much does IRS charge a late filing penalty when you have only one owner in the LLC?

Forum|Forum|7 years ago
June 4, 2019
1 reply
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3 questions:

I know that if you have more than one member/owner in the LLC, the late filing penalty will be $195 per partner and month (up to 12 months).

(1) But what if you are the only member/owner in LLC? does the same penalty applies?

(2) Also, if that penalty applies and this is your first time of late filing, does the "first time abatement" apply?

(3)and is it possible to register 'first time abatement' from turbotax or do i need to ask for professionals/accountants to do that?

(this is the article talks about "first time abatement"->) https://www.entrepreneur.com/article/242849

TurboTax Self Employed Online

ChristinaS

Level 10

There's no "per head" late fee for a Single Member LLC that isn't taxed as a corporation (and most aren't). All late fees and penalties are based on the entirety of your personal tax return. There is no separated penalty based on having an LLC Schedule C on your personal tax return. If an LLC is just you, the IRS treats your situation as if you had no LLC at all. That's because there is no separate entity tax return, such as a partnership return.

Yes, first time abatements can apply to your personal taxes. You can find an overview of the different types of payments and penalties that apply to a personal tax return:

https://www.irs.gov/uac/newsroom/eight-facts-on-late-filing-and-late-payment-penalties

Some states may charge "special" late fees, especially if they require an additional tax return due to having an LLC- such as California's Form 568.

ChristinaS

Level 10

You don't need a pro to have penalties abated. You just need to have the penalties assessed, be up to date on your taxes, and can call the phone number on your penalty letter. I've had clients that are very insecure about tax conversations get this resolved in a 5 minute phone call, so I have no doubt that you could manage that.