UltraTax CS: 1065 penalties

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This topic covers late filing penalties for Federal Form 1065.

How do I start calculating penalties?

Penalties calculate automatically based on the date entered in the General folder > 1065 tab Date return filed field in the Late Filing Penalty section at the bottom-right . To ensure the correct calculations, enter the actual date the return was filed. If that field is blank, UltraTax assumes the return was filed on the original due date. Click here for more information about this input field.

You cannot e-file a 1065 return with penalties pre-calculated. If you start calculating penalties using the instructions above, you will receive an ELF Critical diagnostic: "The IRS does not support electronic filing of returns with pre-computed penalties and/or interest; review the Form 1065 instructions for more information."

How do I stop penalties from calculating?

To remove penalties, go to the General folder > 1065 tab. In the Late Filing Penalty section at the bottom right, mark the Suppress late filing penalty box.

Where can I see the amount of penalties?

The failure to file (FTF) penalty prints at the bottom of Form 1065 page 1. For details on that calculation, review the IRS guidelines on penalties here External link(What's this?)

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Why aren't penalties working the way I expect?

Check each one of the following bullet points:

The filing deadline for partnership returns with taxable years after Dec. 21, 2015 changed from 4/15 to 3/15 as a result of the FAST act. If the return was not filed or extended by 3/15, failure to file penalties apply. Per the IRS, the partnership can send an explanation of late filing. Do not attach the explanation to the return. For more information, or if you received a notice from the IRS, see Understanding Your CP162 Notice External link(What's this?)

This icon appears alongside links to resources that are not developed or maintained by Thomson Reuters. We provide access to these resources for your convenience, but we are not responsible for their accuracy. If you need additional assistance, please consult your qualified technician and/or the vendor who developed the resource.

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