Time is running out and the tax returns for partnership are due soon.
The final deadline to file partnership tax returns (Form 1065) is September 15th, 2010 if an extension was requested.

Partnership no longer enjoy the luxury to file late and not pay the penalty.

For tax years beginning in 2009, the late filing penalty for a partnership return is $89 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were partners in the partnership during any part of the partnership’s tax year.

For tax years beginning after 2009, the late filing penalty for a partnership return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were partners in the partnership during any part of the partnership’s tax year.

So for a partnership with two or more partnership this penalty could add up to an exhorbitant amount.

Relief from penalty is available only if the partnership shows that the late filing was due to reasonable cause.