Missing Information Penalty IRC 6698/6699

Beginning processing year 2022, if the return is incomplete, the penalty will be assessed with a TC 246 PRN 723. See IRM 20.1.2.4.4.1, Procedures for Assessment or Abatement After 01/01/2022, for specific procedures to assess the IRC 6698 penalty manually on Form 1065 and Form 1066. See IRM 20.1.2.6.4.1, Procedures for Assessment or Abatement After 01/01/2022, for procedures to assess the IRC 6699 Penalty on Form 1120-S. Compute Form 1120-S Missing Information Penalty (TC 246) using the following conditions:

Return is MFT 02.

Posting Form 1120-S does not have a RDD/XRDD that falls in a disaster period.

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Missing Schedule Code of 33, 34, 36, 45, 46, 47 or 49 (formerly Missing Information Code of 1-7) is present on the input TC 150 indicating the following:

33 - Missing Schedules K-1

34 - Missing Balance Sheet

36 - Missing Schedules K-1 and Balance Sheet

45 - Missing Schedules K

46 - Missing Schedules K and K-1s

47 - Missing Schedules K and L (Balance Sheet)

49 - Missing Schedules K, K-1s and Balance Sheet

PRN 723 can only be assessed using TC 290 .00 or TC 300 .00 with the applicable IRNs. The table below shows the PRN and IRNs needed to assess the Missing Information penalty under IRC 6698/6699 for Form 1120-S:

Form/MFT

PRN 723

IRN 851

IRN 852

IRN 853

1120-S (MFT 02)

PRN 723 lists the Total Penalty Amount

Number of Shareholders