Need 1120-S Penalty Abatement Forms

[KenGreenberg]

We need the 843 form for S-Corporations. Likewise, we could use a NY penalty abatement form.

I submitted three clients for retroactive S-Corp filing status to 1/1/23. IRS approved the status 8/12.

I had the corporate returns ready and e-filed the next day. Clients then get letters seeking $1,175 penalties from IRS and $300+ from NY because:

1. The 1120-S return - which pays no tax - wasn't filed on 3/15. We couldn't possibly file it before they approved it. So charging the penalty is egregious.
2. Enter NY for the same nonsense

The 843 exists for personal returns not corporate ones. Any retro S-Corp status filing will likely need the form.

Thanks!

[sjrcpa]

For future reference, if you're making a late S election, do it with the return you're filing.

In this case, it would have been with the 2023 return which could have been filed in March. So yes you file  the 1120S before they approve the election.

Not sure how NY handles.