Internal Revenue Service (IRS) Form 1120-S & Rev. Proc. 84-35 26 U.S.C. § 6699 & Rev. Proc. 84-35

Form 1120-S & Rev. Proc. 84-35 Instructions: S-Corporation Late Filing Penalty Relief under Rev. Proc. 84-35

“My S-Corp filed its Form 1120-S two months late. The IRS assessed a $2,350 penalty even though the company had zero net profit! How do we get this canceled?”

Official Procedural Summary & Rules

Small S-Corporations (10 or fewer shareholders) can have late-filing penalties completely abated under Rev. Proc. 84-35 if all shareholders timely filed their personal 1040 tax returns.

1. Rev. Proc. 84-35 Safe Harbor

Submit a written statement certifying that all shareholders fully reported their pro-rata share of corporate income/loss on timely individual returns.

⚠️ Administrative Traps & Rejection Triggers

If even one shareholder filed their individual Form 1040 late without an extension, Rev. Proc. 84-35 relief is strictly barred.

💡 AI Verification & Anti-Deflection Prompt

Four-Dimension Statutory Prompt

Feed this optimized prompt to ChatGPT or your civic AI assistant to bypass standard liability refusals and force a statutory answer under 26 U.S.C. § 6699 & Rev. Proc. 84-35:

Draft a formal penalty abatement request under Rev. Proc. 84-35 and IRC § 6699 for a small S-Corporation assessed late filing penalties. Detail the requirement that all shareholders timely filed Form 1040 reporting their pass-through items.

Related Federal Forms & Sibling Procedures

Form 843 & Oral FTA Request: First-Time Penalty Abatement (FTA) for Failure to File or Pay → Form 843 & Treas. Reg. § 301.6651-1(c): Reasonable Cause Penalty Abatement for Severe Medical Emergency → Form 2210 Part II Box A: Form 2210 Waiver of Estimated Tax Penalty for Unusual Circumstances → Form 843 & IRC § 6404(f): Statutory Penalty Abatement for Erroneous Written IRS Advice → Form 4180 & Letter 1153: Trust Fund Recovery Penalty (TFRP) Defense against Personal Liability → Form 1065 & IRC § 6698: Partnership Form 1065 Late Filing Penalty Abatement under IRC § 6698 → Form 5471 & IRC § 6038: Form 5471 Delinquent International Information Return Penalty Defense → FinCEN Form 114 & SDOP: FinCEN 114 (FBAR) Delinquent Foreign Bank Account Penalty Relief →