Corporate & Partnership Extensions

If you filed an extension for your 2020 taxes, the deadline is approaching quickly and is on Sep 15th this year, as normal. This includes the following entity types:

• S-corps (form 1120-S and supplemental schedules)
• Partnerships (such general partnerships)
• Multi-member LLCs (remember, multi-member LLCs are partnerships in the eyes of the IRS)

Some common reasons why taxpayers file an extension are:

• Needed more time to find a qualified tax professional
• Waiting on bookkeeper to finalize books (let us know if you need bookkeeping support)

• Apprehensive to find out tax balance & wanted to postpone the inevitable
• Many others

For business taxes, you are required to file in many cases even if you did not have any income to report (or if the business lost money). There are penalties for filing late that can be quite substantial. 

Please remember that if you owe tax on these types of flow-through entities, it was due back in May of this year & any payments for 2020 after May 17th are subject to additional failure-to-pay penalties. For this reason, it is critical to have made a reasonable, conservative estimated tax payment to prevent having your extension invalidated by the IRS.

If you have made appropriate payments (or know you don’t owe), it is still a good idea to get finished with your extensions right away. The reason for this is most established practitioners will run out of capacity for new (or even existing) clients as we approach the final days to the deadline. 

In either case, please contact us using the form below if you needed assistance getting your extended taxes filed on time. You can also call the number below 7-days a week. 

A Comment on LLCs

An LLC often has state filing requirements. We support all 50 states. Please make sure to check your state’s annual report or biennial report requirements to make sure you have not run late on those. For example, DE, a very common state, has annual reports due on March 1st and running late can create penalties. Many states will also remove your entity from active status, which can cause problems and fees in the future. 

That aside, for federal purposes, make sure you are filing on time. If you have an s-corp election, your due date was March 15th or Sept 15th on extension. Same applies for multi-member LLCs. If you are single-member LLC, the ordinary individual tax due date applies. Contact us if you have any confusion on the above.  

Please contact us anytime regarding any of these entity types as we have helped thousands of businesses of various size over the years.