When Are Partnership Returns Due for 2017?
A partnership is a popular form of business organization where two or more individuals come together to run a business and share its profits and losses. In the United States, partnerships are required to file an annual tax return known as Form 1065, U.S. Return of Partnership Income. This form is used to report the partnership’s income, deductions, gains, losses, and other relevant information for the tax year.
For the year 2017, the due date for partnership returns is generally April 15th. However, if the partnership operates on a fiscal year rather than a calendar year, the due date is the 15th day of the fourth month following the close of the fiscal year. For example, if the fiscal year ends on June 30th, the partnership return for 2017 would be due on October 15th, 2017.
It is important to note that partnerships can request a six-month extension to file their tax return. The extension must be filed using Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, and must be submitted by the original due date of the return. This extension only grants extra time to file the return, not to pay any taxes owed. Therefore, it is essential to estimate and pay any tax liabilities by the original due date to avoid penalties and interest charges.
Q: Can partnerships file their tax returns electronically?
A: Yes, partnerships have the option to file their tax returns electronically. The IRS provides an electronic filing option called e-file, which is secure and efficient. The IRS encourages taxpayers to file their returns electronically as it reduces errors and speeds up the processing time.
Q: What are the penalties for late filing of partnership returns?
A: If a partnership fails to file its tax return by the due date (including extensions), it may be subject to a penalty of $205 for each month or part of a month the return is late, multiplied by the number of partners in the partnership. The maximum penalty is generally limited to five months.
Q: What if a partnership cannot pay the taxes owed by the due date?
A: If a partnership cannot pay the full amount of taxes owed by the due date, it should still file its tax return on time and pay as much as possible to minimize penalties and interest. The partnership may then enter into an installment agreement with the IRS to pay the remaining balance over time.
Q: Are there any special rules for partnerships with foreign partners?
A: Yes, partnerships with foreign partners may have additional reporting requirements. These partnerships may need to file Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), and Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax, to report and pay any withholding tax on income effectively connected with the conduct of a trade or business in the United States.
Q: Can a partnership request an additional extension to file its tax return?
A: In certain circumstances, a partnership may request an additional extension of time to file its tax return. This request must be submitted in writing to the IRS, explaining the reasons for the extension and demonstrating that the partnership requires additional time to file an accurate return. The IRS will consider the request on a case-by-case basis.
In conclusion, partnership returns for the year 2017 are generally due on April 15th, with an option to request a six-month extension. It is important for partnerships to file their returns on time to avoid penalties and interest charges. The IRS provides electronic filing options for partnerships, and special rules may apply for partnerships with foreign partners. If a partnership cannot pay the taxes owed, it should still file the return and explore options for payment arrangements with the IRS.