1065 Extension 2023 - 2024

The US Return of Partnership Income or better known as Form 1065 is the tax return of businesses with a partnership tax classification. The same as S corporations the deadlines that apply to partnerships are the same for the calendar year. Partnerships must file and submit their tax returns to the Internal Revenue Service by March 15, not April 15. For every month that Form 1065 is late, the IRS imposes a $205 penalty for each month it remains unfiled.

Make sure to file 1065 for your partnership on time to avoid paying late-filing penalties. If you’re in need of more time to file your return, however, you can do so by placing an automatic extension of time to file 1065. Like other business returns, this extension is requested by filling out Form 7004. You can file 7004 to request a six month extension, pushing the deadline to file Form 1065 for the 2023 – 2024 taxes to September 15, 2024. Check out 1065 Form 2024.

Paying partnership income taxes

While placing an extension is easy and doesn’t take much effort, you must pay any unpaid tax by the original deadline regardless of the extension. Since it only gives you time to file the return – not paying – you will be subject to late payment penalties for any unpaid tax you didn’t pay by the March 15 deadline. This also covers taxpayers that have placed an extension but ended up owing the IRS at the time of filing their returns. The late payment penalties are unavoidable for partnerships that filed an extension but had tax liability to pay, but didn’t pay. Make sure that you estimate the tax owed from the partnership before you file an extension and pay by the March 15 deadline.   

How to File a 1065 Extension

Obtain Form 7004

Partnerships seeking an extension must complete Form 7004, titled “Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.” This form serves as the official request for an extension and should be submitted before the original filing deadline.

Provide Necessary Information

In Form 7004, partnerships need to provide essential details, including their name, address, tax identification number, and an estimate of the total tax liability. Providing accurate estimates is crucial to avoid potential penalties or interest on unpaid taxes.

Calculate and Pay Estimated Taxes

While Form 7004 grants an extension for filing the tax return, it does not extend the deadline for paying any taxes owed. Partnerships should make a reasonable estimate of their tax liability and pay any taxes owed to the IRS along with Form 7004. Failure to pay the estimated taxes on time might result in penalties and interest.

Submit Form 7004

Form 7004 should be submitted electronically through the IRS e-file system or mailed to the appropriate IRS address. It’s important to retain a copy of the submitted form and any payment receipts for record-keeping purposes.