S corporations that file late returns face a stiff fine $205 for each month late, up to a maximum of 12 months, multiplied by the number of shareholders in the firm.
Prior to 2014, the penalty was a mere $195. In this case, in which a nine-owner S corporation lacked reasonable cause for filing its 2011, 2012 and 2013 returns in March 2017, a federal court upheld a hefty fine assessed by the Service.
Hunter Maintenance & Leasing Corp., D.C., Ill.