The taxpayer in the case of ATL & Sons Holding Inc. v. Commissioner, 152 TC No. 8, sought to have the Tax Court order the IRS to stop pursuing a failure to file penalty imposed on the taxpayer’s S corporation.  The taxpayer argued that there had been no harm to the government since the shareholders had timely filed their personal returns and reported the income.  While they may not have applied for an extension of time to file the S corporation return, they had filed for such an extension on their personal return and filed within the time period for such filing.