March Filing Deadline for Pass-Through Entities

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March 15 is the federal income tax filing deadline for pass-through entities, this includes calendar-year partnerships, S corporations, and limited liability companies (LLCs) treated as S corporations or partnerships for tax purposes. This deadline is approaching, so it’s important to be informed if your company falls under this category.

Recent changes

Historically the filing deadline for partnerships was the same as that for individuals, April 15. In 2016 this policy was changed, implementing the new March 15 deadline for partnerships. This change makes it easier for owners to file their personal returns by the April deadline, as partnership and S corporation income passes through to the owners. Now, the owners can use the information from the pass-through entity forms to file their personal returns.

Partnerships and S corporations with fiscal year ends now have a deadline of the 15th day of the third month after the close of the tax year. The previous law stated the deadline as the 15th day of the fourth month after the end of the tax year.

Meeting the deadline

If you are yet to file your calendar-year pass-through entity return and are concerned you will be unable to meet the deadline, filing for an extension may be a good option. An extension permits up to six months more time to file your return and avoid a late return. The extension deadline is September 16, 2019, for 2018 returns.

Extensions must be filed by March 15 for a calendar-year entity.

Considerations

If you are missing critical documents or face unexpected events preventing you from filing a return right now, filing for an extension can be a smart decision.

It’s important to note that to avoid potential penalties and interest you still must pay any tax due by the standard deadline (with a few exceptions). Usually, there isn’t tax liability from the S corporation or partnership, but if you also have to file an extension on your personal due to the business extension, you may owe interest and penalties from the personal return.

We can help to file your taxes as timely as possible, and determine if filing an extension is the best option. Contact us at 949-860-9902 or click here, and we will contact you.

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