The Tax Deadline Clock is Ticking to File Corporation and Partnership Returns; Miss the September 16th Deadline and You’ll be Paying Steep Penalties.
This year the final tax filing deadline for 2014 corporation and partnership returns is Tuesday September 15, 2015. Partnership Form 1065, S Corporation Form 1120S and C Corporation Form 1120, which were extended in March and April, are now approaching their final filing deadline. Returns filed late incur steep penalties.
For partnership and S corporations, penalties are $195 per month or part of a month (for a maximum of 12 months) times the number of partners/shareholders. For example, if you have a partnership with five partners and you file the return in October, the penalty will be $1950. For C corporations, the penalty is 5% of any unpaid tax for each month or part of the month the return is late, up to a maximum of 25% of the unpaid tax. Returns with tax due also incur late payment interest. Additionally, Forms 5471 are required for U.S. citizens (including partnerships) who are officers, directors or shareholders in foreign corporations. These forms are required to be attached to the partnership or corporate return. The penalty for late filing for each 5471 is $10,000 for the first 90 days, and $10,000 for each subsequent 30 day period the form is late, up to $50,000 maximum. Also, corporations or partnerships that have foreign owners, or conduct transactions with foreign related parties, may be required to file Form 5472. The late filing penalty for each Form 5472 is also $10,000 for the first 90 days and $10,000 for each subsequent 30 day period.
Partnership K-1’s that flow into another partnership or corporate return often delay the filing of returns until the last minute. However, you can send all available records and information in first so that only the final information from that K-1 has to be dropped into the return when received. This will facilitate the filing of your return and help ensure that your return is filed in a timely manner.Penalties for filing late partnership and corporation tax returns can be substantial. So, the time is now to get your tax information together and to an accountant. Hurst & Hurst CPAs can help you navigate through the process, quickly and easily so that you don’t incur these costly penalties.You can also consult the IRS website www.IRS.gov for more information and a list of all tax filing deadlines.