Attention pass-through entities…. have you submitted your income tax returns yet? If not, you only have about two weeks left! All partnerships will be required to submit federal returns by March 15th.

Who does the deadline apply to?

The March 15th federal deadline applies to all pass through entities, which include calendar year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships for tax purposes. These entities generally file returns on Form 1065 and Form1120S.

What is a pass-through entity?

A pass-through entity is a business structure that reduces the effects of double taxation, (which occurs when income tax is levied once on corporate income, then again when profits are distributed as dividends to shareholders). Income or loss from pass-through entities flows through to the individual owners and is taxed only once on the owners’ tax returns. Therefore, these types of entities are not subject to income tax at the entity level.

What if the entity isn’t on a calendar year basis?

In this case, the return is due the 15th day of the third month following the end of the tax year.

What about C corporations?

Returns for C corporations (Form 1120) are due April 15th. If the C corporation is on a non-calendar year basis, the tax return will be due on the 15th day of the fourth month following the end of the tax year.

And sole proprietorships?

Sole proprietorships and single member LLCs owned by individuals must report self-employment business income (or loss) on Form 1040, Schedule C and rental income (or loss) on Form 1040, Schedule E by April 15th.

TCJA Changes

Check out our blog, How are Pass-through Entities affected by the Tax Cuts and Jobs Act?

Need more time to file?

Avoid a late return by filing for an extension by March 15th. This gives you until September 16th 2019 to get your 2018 returns in.

Questions on the deadline? Having trouble with your filings? Contact a member of our Tax Services Team. Don’t forget to consult our Business and Individual Tax Deadline Calendars.

The TCJA…So Many Changes, So Many Questions…we can help you navigate this huge tax overhaul! Visit our Tax Reform Center for everything you and your business need to know, now.