You are a staff accountant for a local cpa firm, freeman and freeman llp. One of your clients Larry Jones, contacted you in march of 2021 about a new partnership he formed with four others. The partnership, braves Partnership, was started in the middle of 2019 and reports on a calendar year basis (ends December 31). Unfortunately, Larry conatcted you a little late since the 2019 partnership return was due on April 15, 2020.
Larry provided the information and your office promplty prepared the return in late March, 2021. The transmittal letter to Larry included a paragraph warning him that the IRS would probably assess penalties for late filing. Penalties for partnerships that file late are $195 per partner, per month.
On April 26,2021 Larry called and said he recieved a late filing penalty notice assessing $10,725. He faxed the notice to you for review. Based on your review the assessed amount is caluclated correctly.
Facts regarding the Partnership:
1. All 5 partners are individuals and US citizens
2. All 5 partners timely filed their 2019 individual income tax returns in 2020 and inlcuded their share partnership taxable income.
3. All 5 partners are equal owners of the partnership
Larry wants YOU to respond to the IRS notice and request relief for penalty.
0 comments