Dear ,
Time flies, and we are already just a few days away from the deadline for Partnerships and S-Corps to file 2021 returns. If you run any of the above, pay attention to this message.
What's due for Partnerships?
Partnerships must do the following before or by the end of the day on March 15, 2022.
- File 2021 returns (Form 1065)
- Provide each partner with a copy of their Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., or substitute Schedule K-1 (Form 1065) and, if applicable, Schedule K-3 (Form 1065) or substitute Schedule K-3 (Form 1065).
- If you think you cannot manage to meet the deadline, request an extension to file by filing Form 7004. You will get an automatic 6-month extension.
- After getting the extension, file the return and provide each partner with a copy of their final or amended (if required) Schedule K-1 (Form 1065) and, if applicable, Schedule K-3 (Form 1065) by September 15.
Please refer to my social media pages @folasadetheaccountant for more information about Schedule K-3.
What's due for S-Corporations?
Here is what your S-Corp must do before the end of the day on March 15, 2022.
- File 2021 income tax returns (Form 1120-S)
- Pay any tax due and provide each shareholder with a copy of their Schedule K-1 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc., or substitute Schedule K-1 (Form 1120-S) and, if applicable, Schedule K-3 (Form 1120-S) or substitute Schedule K-3 (Form
1120-S).
- If you won't manage to complete this by the deadline, request an automatic 6-month extension to file the return by filing Form 7004.
- Deposit your estimated tax owed.
- File the return; pay any tax, interest, and penalties due, and provide each shareholder with a copy of their Schedule K-1 (Form 1120-S) and, if applicable, Schedule K-3 (Form 1120-S) by September 15.
Do you want to elect to be taxed as an S-Corporation?
If yes to the above, then file Form 2553 to elect to be treated as an S-Corp beginning with calendar year 2022. If you file this form late, S corporation treatment will begin with calendar year 2023.
Thank you, and contact me at (202) 618-1297 if you have any questions about the above or want me to prepare your personal or business 2021 tax return.
