Reminder:

When Adjusting these accounts you must input the correct received date in the REQ54 adjustment screen by entering the correct date in the Ret Proc Date field on IDRS.

If a partnership terminates before the end of the tax year, Form 1065 must be filed for the short period. The short period consists of the period from the beginning of the tax year through the date of termination. Therefore, the return is due the 15th day of the third month following the termination. If more time is needed to file, the Form 7004 must be filed by the short period return due date (the 15th day of the third month following the date of termination).

If a Form 1120-S is used to file a short period return, it must filed by the 15th day of the 3rd month following the end of the short tax year. A dissolving corporation is required to file a return for the short period from the first day of its normal accounting period to the date of dissolution. The return is due the 15th day of the 3rd month following the close of the short tax year.

Research the module and return if the return is available, to verify the number of partners/shareholders on the module match the number of partners/shareholders displayed in OLNR. If the number listed on the module is correct and the number of partners/shareholders in OLNR differs from that amount, retype the notice with the correct number of partners/shareholders and update the penalty amount in OLNR as appropriate.

Research the module and return if the return is available, to verify the number of months matches the number of months on the module match the number of months displayed in OLNR. If the number listed on the module is correct and the number of months in OLNR differs from that amount, retype the notice with the correct number of months and update the penalty amount in OLNR as appropriate.

Research the module to verify that the base penalty amount displaying in OLNR is correct.

The penalty for failure to file or failure to file a complete return for Form 1065, or Form 1066, is charged for each month (or part of a month) that the failure continues for up to 12 months (for tax periods after December 20, 2007). See IRM 20.1.2.4.2, entitled, Penalty Computation for more information on these penalties.

The penalty for the failure to file or failure to file a complete return, Form 1120-S, U.S. Income Tax Return for an S Corporation, is charged for each month (or part of a month) that the failure continues for up to 12 months. See IRM 20.1.2.6.2, entitled, Penalty Computation for more information on these penalties.