Unlike personal tax returns, if a partnership or corporation file a late return there can be penalties, even if there is no tax due.
Per the 2024 Instructions for Form 1065 (Partnership):
- Late Filing of Return: A penalty is assessed against the partnership if it's required to file a partnership return and it (a) fails to file the return by the due date, including extensions; or (b) files a return that fails to show all the information required, unless such failure is due to reasonable cause. The penalty is $245 for each month or part of a month (for a maximum of 12 months) the failure continues, multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year for which the return is due.
- Failure To Furnish Information Timely: For each failure to furnish Schedule K-1 (and K-3, if applicable) to a partner when due and each failure to include on Schedule K-1 (and K-3, if applicable) all the information required to be shown (or the inclusion of incorrect information), a $330 penalty may be imposed for each Schedule K-1 (and K-3, if applicable) for which a failure occurs.
Per the 2024 instructions for Form 1120-S (S Corporation):
- Late filing of return: A penalty may be assessed if the return is filed after the due date (including extensions) or the return doesn't show all the information required, unless each failure is due to reasonable cause. For returns on which no tax is due, the penalty is $245 for each month or part of a month (up to 12 months) the return is late or doesn't include the required information, multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year for which the return is due. If tax is due, the penalty is the amount stated above plus 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a tax return required to be filed in 2025 that is more than 60 days late is the smaller of the tax due or $510.
- Late payment of tax. A corporation that doesn't pay the tax when due may generally be penalized 1/2 of 1% of the unpaid tax for each month or part of a month the tax isn't paid, up to a maximum of 25% of the unpaid tax.
- Failure to furnish information timely. For each failure to furnish Schedule K-1 (and Schedule K-3, if applicable) to a shareholder when due and each failure to include on Schedule K-1 (and Schedule K-3, if applicable) all the information required to be shown (or the inclusion of incorrect information), a $330 penalty may be imposed with respect to each Schedule K-1 (and Schedule K-3, if applicable) for which a failure occurs. If the requirement to report correct information is intentionally disregarded, each $330 penalty is increased to $660 or, if greater, 10% of the aggregate amount of items required to be reported.
Per the 2024 instructions for Form 1120 (Corporate):
- Late filing of return. A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a tax return required to be filed in 2025 that is more than 60 days late is the smaller of the tax due or $510.
- Late payment of tax. A corporation that does not pay the tax when due may generally be penalized 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax.
Note that these, along with other information on interest and penalties, can be found in the instructions to the forms on the IRS website.
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