Effective for returns required to be filed (including extensions of time) after 12-20-07, the penalty for failing to file an S Corporation return is $85 per month/per owner for a maximum period of 12 months. And the penalty for failing to file a Partnership return is $86 per month/per partner for a maximum period of 12 months.

Therefore, the maximum penalty per shareholder in an S Corporation is $1,020. And the maximum penalty per partner in a partnership is $1,032

These penalties also apply to a failure to provide the information required on the return as well as to a failure to file a return. The penalty does not apply if a failure to file a return or to provide required information is due to reasonable cause.