Filing for a LLC partnership

[simplitia]

Hi, I started an LLC partnership on 2021 and started selling online Nov 2021.  However I while going through the wizard I realized that LLC is due March 15 and not April.  2 questions.

1. So now I guess I have to file an extenstion? 

2. when I click on yes tt is asking "reason for short year" so I'm really confused about which options to chose from? 

there is "initial return", final return, and 2 other that for sure its not my situation.  I don't know what these mean but suspect that it A, initial return? 

thanks in advance. 

[tagteam · Accepted solution]

It is too late to file an extension (Form 7004). The extension was required to be filed by the due date of the return (March 15th).

See https://www.irs.gov/instructions/i1065#en_US_2021_publink11392vd0e940

[tagteam]

There is a penalty for late filing, but you may be able to get it abated if the reason for your late filing meets the reasonable-cause criteria of the IRS.

See https://www.irs.gov/instructions/i1065#en_US_2021_publink11392vd0e1221

[simplitia]

ok thank you. So I should just file it and not worry about the extension. when would I know how much the penalty is. Will turbo tax let me know? thank you. sorry this is just all so new to me. 

[tagteam]

TurboTax will not let you know the amount of the penalty. 

The penalty is $210 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. 

You should file your return as soon as possible and wait for the IRS to send you a letter (which may never happen, anyway).

[DavidD66]

More than likely, the IRS will send you letter notifying you that you owe a penalty for filing late.  You should respond to them in writing and ask that they waive the penalty because you were unaware of the earlier deadline for partnership returns.  There is a good change they will waive the penalty.  If you file on or before April 15 your penalty will increase from $210 per partner to $420 per partner.  The penalty is $210 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.  

[Mike9241]

initial return (first return filed by the partnership) file ASAP.  you will get a bill from the IRS of approx $400 (assuming 2 partners) for each month or fraction thereof late. so if you don't file before 4/18/22 another $400 tacks on.   with the penalty notice there will be a means to protest it.  generally, send back the notice with a signed and dated statement that includes a phrase that since this was first time filing you were unaware that it was due  3/15 and that you have taken steps to ensure timely filing of the return or extension in the future. the decision is up to the IRS, but generally, they abate penalties for first-time late filers.  do not be surprised if it takes the IRS quite a while to send out the notice.

[simplitia]

thanks @DavidD66 just as you mentioned I just receive a penalty letter. Should I include in writing to as them to waive the panalty along with a check or should I just write back first?