Corporate Tax Penalties: Late Filing, Late Payment & Underpayment

Missing a corporate tax deadline can lead to more than one type of IRS charge. Depending on what went wrong, a corporation may face penalties for filing late, paying late, underpaying estimated taxes, or filing an inaccurate return.

Understanding the differences can help businesses respond appropriately and prevent additional penalties and interest from accumulating.

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What Are the Main Corporate Tax Penalties?

Common federal corporate tax penalties include penalties for filing a return late, paying tax after the due date, and failing to make sufficient estimated tax payments during the year.

Additional penalties can apply to inaccurate returns, payroll tax problems, and certain reporting failures. Interest may also accrue on unpaid tax and some penalties.