Failure to File Penalty (IRC 6698/6699)

Prior to processing year 2022, the IRC 6698/6699 penalty was assessed systemically on applicable Form 1065, Form 1066 or Form 1120-S modules, using Transaction Code (TC) 166 for filing late, or with TC 246 without a penalty reference number (PRN) if required information was missing. The penalty was abated systemically with TC 167 or TC 247 (if changes post to the partnership's account causing IRS computers to compute a lower penalty or no penalty) or manually abated using TC 161 if assessed as TC 16X or TC 241 without a PRN if assessed as TC 24X.

Refer to the Penalties Knowledge Base SharePoint site, IRC 6698 and 6699 Penalty Information, to access information on IRC 6698 and 6699 Penalties. See IRM 20.1.2.4, Failure to File a Partnership Return—IRC 6698, and IRM 20.1.2.6, Failure to File S Corporation Return—IRC 6699, for more information.

Refer to the Penalties Knowledge Base SharePoint site, IRC 6698 Penalty Knowledge Base to access information on the IRC 6698 & 6699 Penalty Computation Tool.

Beginning processing year 2022, if the return is complete but received late, the penalty is assessed systemically with TC 246 PRN 722.