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Limited Partnership late fees

December 07, 2016 • James McGowan • Log In to Post Comments

Attorney formed a Nevada Limited Partnership for Arizona resident that has property in California. The attorney filed with CA Secretary of State forming business in 2013. CPA was informed that LP paperwork was "finalized" in 2015. So in April of 2016 I was provided the paperwork that showed Sec of State filing in 2013 even though no business conducted, no income, no checking accounts until 2016. 

Filed 2013, 2014 and 2015 tax returns with $800 minimum payment and received $4,000 late penalties for 2013 and 2014. Client wrote a letter and 2013 penalty was abated.

Why was 2013 penalty abated and can the 2014 penalty be abated also?


I'm not sure why it was abated, unless maybe the LP was formed within the last 15 days. You can certainly request abatement of hte other years.

Thank-you for the response.  Client said first year was abated as a "one time grace option" for first year filers. Any suggestions on verbage/cause to use on request for abatement?


I'm assuming you mean abate with the FTB, not IRS. I would argue that they were told by the attorney that the SOS paperwork wasn't done until 2015. Attach any supporting documentation.

Yes FTB not IRS. Thanks for the suggestions....


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