topic Where to enter tax penalty on S Corp taxes? in Get your taxes done using TurboTax

Where to enter tax penalty on S Corp taxes?

brent311 — Mon, 23 Feb 2026 13:17:50 GMT

I have turbo tax business and working on my S Corp taxes. This year, I discovered we had not filed form 5500EZ for the company's 401K for the previous 3 years. I had to submit the delinquent 5500EZ forms plus a $1500.00 penalty for late filing. I initially planned to list the $1500.00 penalty in the section under taxes, but I was told that penalties are not tax deductible so I did not want to include them there. Do I list the penalty payment as distributions to the owner (my self) so I pay tax on it on my personal taxes? I am not sure where to list it. Can someone help me?

Thanks!

Brent

Re: Where to enter tax penalty on S Corp taxes?

Anonymous_ — Sun, 05 Feb 2023 19:23:26 GMT

Note that the following link is to instructions for Intuit's pro tax software, but they will work for TurboTax Business after you enter Forms Mode and open page 3-5 of your 1120-S (scroll down to Schedule M-1).

https://proconnect.intuit.com/support/en-us/help-article/tax-penalties/entering-penalties-paid-corporation-corporation/L9NvDadC1_US_en_US

Re: Where to enter tax penalty on S Corp taxes?

brent311 — Sun, 05 Feb 2023 20:47:19 GMT

Thank you!

-Brent