What is the penalty for failing to file a partnership tax return?

The penalty for failing to file a partnership tax return is indeed $220 per partner for each month, or portion of a month, that the return is late. This penalty structure is designed to impose a financial consequence on partnerships that do not comply with the filing requirements, thus encouraging timely reporting to the IRS.

In this case, each partner is considered individually regarding the penalty, which makes it cumulative; thus, if a partnership has multiple partners, the penalties can quickly escalate based on the number of partners and the duration of the delay. It's important for partnerships to understand this compliance requirement to avoid significant penalties.

Other options either inaccurately describe the nature of the penalties by suggesting that they apply to the partnership as a whole rather than individually to each partner, or misstate the amount associated with the penalties, thus misrepresenting the potential financial implications of failing to file appropriately.