April 15 isn’t the only important deadline to heed when it comes to filing income tax returns. March 15 is the appointed deadline for federal income tax filing for calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Calendar-year partnerships now share the S corporations’ long-standing March deadline for the second year, in lieu of its usual April cutoff.
For 2017 returns, the deadline will be April 17, 2018, due to April 15 being a weekend and a holiday in Washington, D.C.
Why the deadline change?
A main purpose for changing the partnership filing deadline is to help alleviate the burden owners face in filing their personal returns by the April due date. Since partnership and S corporation income passes through to the owners, they can now use the information contained in the pass-through entity forms, gathered at an earlier date, to file their personal returns.
What about fiscal-year entities?
Fiscal-year partnerships now share the same deadline as fiscal-year S corporations; the due date for tax returns is the 15th day of the third month after the end of the tax year. Before the change in legislation, partnerships with fiscal-year ends had a deadline of the 15th day of the fourth month after the close of the fiscal tax year for their returns.
What about extensions?
You might be considering filing an extension if you have not yet filed your calendar-year S corporation or partnership return yet. The prior law only granted a 5-month extension to partnerships but both entities now have a maximum extension of six months. The extension deadline is the same (until September 17, 2018, for 2017 returns) — only the length of the extension has changed.
If you are filing a return for an S corporation or a partnership, and it’s a calendar-year entity, then you will need to file by March 15 for the extension.
When does an extension make sense?
Filing for an extension can be tax-smart if you do not have crucial paperwork ready or if you have been derailed by an unexpected predicament that has kept you from giving your tax return the attention it deserves.
Remember, to avoid potential interest and penalties, you will still be required to pay any tax due by the original deadline, though a few exceptions may exist. There might not be any tax liability from the partnership or S corporation return. On the other hand, if filing for an extension for the entity return leads you to file an extension for your personal return, too, then please consider this in relation to the April 17 deadline for individual tax returns.
For help answering your questions regarding filing deadlines or how you can steer clear of interest and penalties, call us at 949-860-9902 or click here to contact us.