Question: I have a partnership with 3 partners. My business has not generate any income yet. Do I need to file the return?
Yes, you need to timely file the partnership tax return. IRS can assess partnership failure to file penalties of $195 times number of partners per month up to 12 months per return. CA penalty is $18 times number of partners per month up to 12 months per returns.
Although IRS provide relief for certain exceptions, it is still a battle to qualify the relief. Therefore, it is important to file on time even you believe you have income to report yet.
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Circular 230:The articles are for general information only. In accordance with IRS Circular 230 they are not considered tax opinions for purposes of relying on such statements in any challenge of the reporting of the above transaction by the IRS. If a full tax opinion is required certain procedures must be met . Also there is a significant cost for a full tax opinion to meet the requirements of Circular 230.