How the Late Filing Penalty for Corporate Taxes is Calculated

If a corporation files their taxes late, they will be responsible for paying a late filing penalty. Here are the basics of how the late filing penalty is calculated for corporate taxes.

S Corporation

If you have an S corporation, you are going to pay a flat $195 for every month that you are late. You will have to pay this fee regardless of whether it is a full or partial month. This fee can continue to be charged over the span of 12 months.

C Corporation

If you have a C corporation, you are going to have to pay an additional amount for late filing. First of all, you will need to determine what your due date is depending on what type of company you have. Not everyone has to pay taxes by April 15 when dealing with a business.

When you are calculating the late filing penalty, they are going to add 5 percent of the total amount that you owe every month that you are late. This amount is going to be calculated when you actually file your taxes and it will be based on the total amount of tax liability. If you do not owe any corporate taxes, you will not have any penalty to worry about.

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