When is a partnership or S corp tax return due?

Two tax deadlines, not one

Most people plan their year around one tax deadline: April 15. Business owners who file a partnership or S corp tax return have two, and the first one comes a month earlier.

Why the business tax return comes first

A partnership or an S corp usually does not pay income tax itself. Its profit passes through to the owners on a form called a K-1, and each owner reports that income on their own tax return.

That is why IRS wants the business tax return first. For a business on a calendar year, the partnership or S corp tax return is due March 15, a month before personal tax returns. The earlier date gives the owners time to get their K-1s before their own tax returns are due.

What if the business tax return isn't ready?

If the business tax return is not ready by March 15, the business can file an extension by that date. An extension gives the business six more months to file.

Missing the deadline without an extension can get expensive. IRS charges a late-filing penalty for every owner, for every month the business tax return is late. The more owners the business has, the faster that penalty adds up.

So if you own part of a partnership or an S corp, keep both dates on your calendar:

• March 15: the business tax return (or its extension) is due.
• April 15: your own tax return is due.

How we handle it

At Sansone CPA & Financial, we coordinate your tax, investment, and retirement decisions so your business tax return and your personal tax return are planned together, not as two separate deadlines. That is the core of our tax and financial planning for business owners in Crystal Lake, IL.