If you operate your business as a partnership, the partnership must file Form 1065, U.S. Partnership Return of Income, on an annual basis, to report income and deductions. Each partner must receive a copy of Schedule K-1, Partner's Share of Income, Credits, Deductions, etc. (which is part of Form 1065), or a substitute K-1. For partnerships with a calendar year, the due date for the annual return and Schedule K-1 is April 15.

For federal tax purposes, limited liability companies with more than one member are treated as partnerships, and LLC members are treated as partners.

A partnership may apply for an automatic three-month extension to file its annual return by filing Form 8736, Application for Automatic Extension of Time to File U.S. Return for a Partnership, by April 15. The return would then be due on July 15. If the partnership needs more time to file, it can file Form 8800, Application for Additional Extension of Time to File U.S. Return for a Partnership, by July 15, to apply for an additional three-month extension. This extension is not automatic. If the IRS grants the partnership this additional time to file, the return will be due on October 15.

 

Work Smart If a partnership knows that it's going to need more time than the three-month automatic extension, it's wise to apply for the additional three-month extension as soon as possible. Because the second extension is not automatic, the sooner you know whether the IRS has granted it, the better!

Remember, these extensions only apply to the filing of the partnership return, not to the payment of any tax that may be due. The partnership must pay any tax that is due by April 15 or it may be subject to interest and penalties on overdue taxes.

Fiscal year taxpayers. If your partnership uses a fiscal year rather than a calendar year, the annual partnership return (including all the applicable schedules), must be filed no later than the 15th day of the fourth month after the end of the partnership's tax year. A fiscal year partnership is entitled to the same automatic three-month extension to file its return to which a calendar year partnership is entitled. The extension request must be filed by the date the original return is due (the 15th day of the fourth month after the partnership's tax year). The due date for the filing of the return then is the 15th day of the third month after the original due date of the return. The partnership may apply for an additional three-month extension (which is granted at the IRS's discretion), by the 15th day of the third month of the original three-month extension.

If the additional extension is granted, the due date for the return is the 15th day of the third month after the automatic three-month extension was granted.