Tax Payers Checklist

Failure to file penalty

IRS calculate the Failure to File penalty in this way:

  • The Failure to File penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.

  • If both a Failure to File and a Failure to Pay penalty are applied in the same month, the Failure to File penalty is reduced by the amount of the Failure to Pay penalty for that month, for a combined penalty of 5% for each month or part of a month that your return was late.

  • If after 5 months you still haven't paid, the Failure to File penalty will max out, but the Failure to Pay penalty continues until the tax is paid, up to its maximum of 25% of the unpaid tax as of the due date.

  • If the return is more than 60 days late, the minimum Failure to File penalty is the amount shown below or 100% of the underpayment, whichever is less:

Return Due Date (without extension) Minimum Amount

On or before 12/31/2008 $100.00

Between 01/01/2009 and 12/31/2015 $135.00

Between 01/01/2016 and 12/31/2017 $205.00

Between 01/01/2018 and 12/31/2019 $210.00

Between 01/01/2020 and 12/31/2022 $435.00

Between 01/01/2023 and 12/31/2023 $450.00

After 12/31/2023 $485.00

FINCEN: BOI Information for Business Owners

The new reporting requirements under the Corporate Transparency Act for all corporations, limited liability companies and other businesses, will begin in 2024.

Beginning January 1, 2024, reporting companies will be required to file a beneficial ownership information report with FinCEN. Reporting companies that were in existence as of January 1, 2024, must file their initial report by January 1, 2025. New companies that are formed on or after January 1, 2024 must complete and file their initial report within 30 days after they were created or registered.

After filing their initial report, a reporting company will only need to file another beneficial ownership report when they need to report changes to their initial report. The company must report any changes within 30 days of when they become aware of a change or has reason to know of an inaccuracy of information in their earlier report.

What Companies Are Affected by the Corporate Transparency Act?
A reporting company is defined as a corporation, limited liability company (LLC), a limited partnership, limited liability partnership, any entity created by the filing of a document with the secretary of state or similar office under the law of a state or Indian tribe or formed under the laws of a foreign country and registered to do business in the United States.

This Act does not apply to sole proprietorships or general partnerships.

What Type of Information Must Be Reported?
When filing a Beneficial Ownership Report with FinCEN, the reporting company must report the following information:

Company identifying information such as:

• Legal name of the entity
• Address
• Jurisdiction in which it was first formed and registered in
• Tax identification number

Identifying information on beneficial owners (the individuals who ultimately own or control the company) such as:

• Name
• Birth date
• Address
• ID number from their passport or driver’s license
• Image of document with ID

Violation of BOI Reporting

As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues.