15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Partnership, S-Corp and Trust Extensions End September 15, 2015

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If you are responsible for the tax filings of a partnership (such as an LLC), an S-Corp, C-Corp, or a trust, you may be working under the assumption that the final date for filing your 2014 tax return is October 15, the same date as personal taxes and certain LLC’s who have only one partner.

Because these types of entities pass through profits and losses to their partners, shareholders, or beneficiaries, the IRS requires that the tax returns be filed on September 15, allowing partners, shareholders, and beneficiaries an entire month to prepare their personal returns.

K-1’s, or the reporting to these groups of their share of the income of the partnership, S-Corp, or trust, must be mailed by April 15, even if the entity is going to file late (by September 15). If there is a material change in the distribution when the return is later filed, then new K-1’s need to be issued. In other words, the entity is required to make a good faith estimate of the distribution amounts by April 15.

Failure to file the form 1065 or 1120, or 1120S income tax return by September 15 or the 15th day of the 9th month of the fiscal year, can lead to serious penalties, as the penalties are assessed “per partner.” Similarly, the penalties for failure to send out K-1’s by the 15th day of the 4th month of the fiscal year (April 15 for calendar year companies), are also severe.

The tax rules are complicated and ever changing. Even this rule was changed within the last few years. You have plenty to do with other aspects of running your entity. Turn over the payroll and tax issues to professionals like those at ATPP. We will make sure all returns are filed in a timely manner, and that K1’s are mailed as required under law.  818-436-2775