March 15 Tax Deadline Reminder for Partnerships, LLCs and S-Corporations
Partnerships (including LLCs taxed as partnerships) and S-corporations are known as pass-through entities as they pay no tax and passthrough their income on Schedule K-1 to its owners.
Due to many taxpayer complaints about receiving K-1s on April 15, the IRS moved the deadline for filing Partnership (including LLC returns) and S-Corporation returns to March 15. However, 6 month extension of time to file returns are still allowed.
Don’t forget that California S-corporations may have tax due on March 15 as CA imposes a 1.5% tax on S-corporations.
The penalties for late partnership and S-corporation returns are steep.
The penalty is $210 for each month or part of a month (for a maximum of 12 months) the failure continues, multiplied by the total number of persons who were partners/shareholders in the partnership/S-corporation during any part of the tax year for which the return is due.
Employer Retirement Plan Contributions Also Due March 15
If your partnership or S-corporation has a retirement plan, the 2018 plan year contribution is also due by March 15.
Tax Tip: You can actually file for an extension of time to file the tax return and this will extend the retirement plan contribution due date by 6 months as well.
Partnership Nonresident Withholding Also Due March 15
March 15 is also the deadline to file partnership nonresident withholding tax returns.