Failure to File Partnership Return

ID:
Office:
UILC:
CCA_2008121910552053
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6698.00-00
Number: 200909057
Release Date: 2/27/2009
From: ---
Sent: Friday, December 19, 2008 10:55:22 AM
To: ---
Cc: ---
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Subject: FW: Your Question on IRC 6698
Hello,
We agree with --- analysis of the section 6698(b) penalty.
P.L. 110-142 amended section 6698(b), increasing the penalty for failure to file a partnership return from $50 to $85. If H.R. 7327 is signed into law, it will amend section 6698(b) again, increasing the penalty for failure to file from $85 to $89. H.R. 7327 will apply to returns required to be filed after December 31, 2008.
P.L. 110-141 did not amend section 6698(b) and imposes an independent increase to the section 6698(b) penalty. P.L. 110-141 increased the section 6698(b) penalty by $1 for any return that was required to be filed under section 6031 for a taxable year beginning in 2008. Thus, the section 6698(b) penalty, as amended by P.L. 110-142, would increase from $85 to $86. If H.R. 7327 becomes law, the section 6698(b) penalty would increase from $89 to $90. The $1 increases only applies to the 2008 tax year.
Here is a chronologic breakdown of the penalty rates assuming H.R. 7317 becomes law:
Returns required to be filed on or before December 20, 2007: $50
Returns required to be filed after December 20, 2007 but on or before December 31, 2008: $85
Returns required to be filed after December 3, 2008: $89
For a return required to be filed for a taxable year beginning in 2008: add $1 to the above rate
If you have any further questions please feel free to contact me at ---. Have a wonderful holiday season.
Regards,
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