Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

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.

To schedule your S-corporation, partnership or LLC tax return preparation, contact me today.

Richard Pon CPA, CFP