This a basic calculation of how much you’re looking to be paid without interest.
- The applicable base penalty rate (which is $235.00 per month for 2024).
- The total number of individuals who were partners in the partnership at any point during the taxable year.
- The number of months (or partial months) the failure persisted, up to a maximum of 12 months.
As a small partnership, you might be able to get relief from those annoying penalties for filing your partnership return late or incomplete. This relief is automatically granted, as long as you have a reasonable cause and meet the specific criteria detailed in Revenue Procedure 84-35.
- Size and Partner Type: The partnership must have 10 or fewer partners. A married couple (or their estate) filing a joint return is counted as a single partner. Each partner must be an individual (not including nonresident aliens) or the estate of a deceased partner.
- Allocation: All items of income, deductions, and credits must be allocated to each partner in the same proportion.
- Partner Reporting: Each partner must have reported their share of the partnership's income on their own timely filed income tax return.
For more information, see Penalty relief for reasonable cause.
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