What is the penalty for a partnership's failure to file by the due date, including extensions?

The penalty for a partnership's failure to file its tax return by the due date, including any granted extensions, is set at a rate of $210 per partner per month. This amount reflects the IRS's approach to encouraging timely filing and compliance among partnerships.

The penalty applies for each month or part of a month that the return is late, and it is assessed for each partner individually. This means that if a partnership with multiple partners fails to file on time, the total penalty can increase significantly based on the number of partners.

The significance of this penalty structure lies in its motivation for partnerships to adhere to filing deadlines and highlights the potential financial impact of neglecting these obligations. Understanding this penalty is crucial for partnerships as they plan their filing procedures and ensure compliance with IRS regulations.