Topic Thread

Late filed partnership returns

  • 1.  Late filed partnership returns

    Posted 03-12-2018 10:19
    I have a few questions about penalties for late filed partnership returns: it's a new client - a family limited partnership holding commercial real estate, with more than partners.  No returns have been filed since 2011.  I'm working on 2012 - 2017 returns.  After the father, who originally set up the FLP, died in 2011, there was family infighting and no tax returns were prepared.  The fighting resulted in litigation in early 2013.  The partners finally agreed to settle by appointing an agent to handle the operations and ultimate sale of the property.  The agent retained me.
    I know I cannot use Rev Proc 84-35 to abate penalties (more than 10 partners and there are no spousal partners in the FLP.
    Maybe I can get the first year (2012) abated.  I can also argue for reasonable cause being the death of the founder, sibling litigation, lack of access to all records, etc.  So here are my questions:
    Does anyone have experience with requesting abatement of penalties in a similar situation?  At $195 per month per partner, the potential penalties are huge.  Do you have alternative suggestions for abatement?
    Am I better off requesting the abatement with the actual filings, or wait until the penalties are assessed, and then respond to the notices?
    How will NYS deal with this?  Are there penalties, and will NYS follow the outcome of the Federal penalty assessments?

    Thanks in advance for taking time during this very busy month.


    Steven T. Rosenberg, CPA  
    201 Moreland Road, Suite 6
    Hauppauge, New York  11788 USA   
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