Partnerships that fail to timely meet their obligations to file their partnership tax returns by the specified due date (with regard to extensions), or to furnish Schedule K-1s to their partners, will be assessed a monetary penalty, unless such failure is due to reasonable cause (for example, reliance upon the advice of a tax professional whose competence the taxpayer has no reason to doubt). Many partnerships filed their 2016 returns (for their first taxable year beginning after December 31, 2015), or requests for an extension of time to file such returns, by the date previously required by the Code (April 15 in the case of a partnership with a taxable year ending December 31) in other words, they were filed late. It seems that you and your partnership were not alone. The new due date applies to the returns of partnerships for taxable years beginning after December 31, 2015. Partnerships that receive an extension of time to file Form 1065 receive a concurrent extension of time to furnish their partners with Schedules K-1. The due date for filing the annual return of a partnership – or for requesting an extension of time to file such return (using IRS Form 7004, “Application for Automatic Extension of Time To File”) – changed from the fifteenth day of the fourth month following the close of the taxable year (April 15 for calendar-year partnerships) to the fifteenth day of the third month following the close of the taxable year (March 15 for calendar-year partnerships).Ī partnership must also issue a Schedule K-1 to each of its partners – reporting such partnership information as the partners may need to complete their own income tax returns, including each partner’s share of the partnership’s income and deductions – by the same due date. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (the “Act”), amended the Code to change the date by which a partnership must file its annual return.

Return of Partnership Income”), or issue Schedule K-1s (“Partner’s Share of Income, Deductions, Credits, etc.”) to its partners, by the new due date for taxable years beginning in 2016.

Late last week, the IRS issued guidance providing penalty relief for certain partnerships that did not file the required tax return, on IRS Form 1065 (“U.S. Are you a member of a partnership or of a limited liability company that is treated as a partnership for tax purposes (a “partnership”)? Did your partnership file its 2016 tax return late this year? How about K-1s? Were these forms issued late to its partners? Then this post may be for you.

New york 2016 tax extension