The IRS doesn’t require partnerships to pay any income tax. Instead, all it needs to do is file Form 1065 to report income, deductions, gains, and losses which must file be filed by the 15th day of the 3rd month after the tax year ends. For calendar year partnerships, that’s March 15th. The IRS also gives you the option to file partnership extension form 7004 for an automatic 6-month extension.
What Is Form 7004 for Partnerships?
Form 7004 gives you the ability to file partnership tax extension online (or offline) to get an automatic 6-month filing extension for Form 1065. It must be filed by the regular due date or 15th day of the 3rd month after the tax year ends to be valid.
Filing an extension can prevent your partnership from being fined $245 per partner for each month or part of a month (for a maximum of 12 months) if you fail to e-file Form 1065 extension, Form 7004, on time.
Note: The extension does NOT extend tax payment or the members personal tax filing deadlines.
What Is the Penalty for Failing to File Form 1065?
The IRS charges a late filing penalty if a partnership filed Form 1065 late or submits an incomplete form. The penalty is $245 per partner, per month (or part of a month), up to 12 months maximum.
Not giving each partner their Schedule K-1 (and K-3, if required) on time, or including wrong information also causes you to pay penalties of $330 per missing or incorrect K-1/K-3.
Deadline & Extended Deadline For Partnerships
Before filing, every partnership should confirm the correct Form 7004 due date for partnerships to ensure they get the extension on time.
| Type of Tax Year | Definition | Due Date | Extended Deadline After Filing 7004 |
|---|---|---|---|
| Calendar Year | Partnerships that follow calendar year (Jan to Dec) | March 15 | September 15 |
| Fiscal Year | Partnerships that follow fiscal year | 15th day of the 3rd month after FY end | 6 months extension |
State Filing Extension Rules for Partnerships
Each state has different state conformity 1065 extension rules, so check whether your state follows the federal 7004 deadlines.
| State | Separate State Form Required? |
|---|---|
| California | No |
| Georgia | Yes, Form IT-303 |
| New York | Yes, Form IT-370P |
| Indiana | No |
| Illinois | No |
| New Jersey | Yes, Form CBT-2553 |
| Arizona | No |
Form 7004 Line-by-Line for Form 1065
Here is a step-by-step form filing guide to partnership extension form 7004.
1. Basic Business Details: Business name, EIN, address, and tax year. This must match IRS records.
2. Part I- Line 1: Choose the correct form codes. For partnership Form 1065, the extension code is Code 09.
3. Part II- Lines 2-4: Check the boxes if the partnership is a:
- Foreign corporation without a U.S. Office
- Parent company of a group of companies
- Meets special qualification under Regulations 1.6081-5
4. Part III- Line 5s & 5b: Mention the year you are filing for. It can be either calendar year or fiscal year
5. Part III- Lines 6, 7, & 8: These lines report the estimated tax owed, aggregated total payments, and the balance due for the year.
Multi-Member LLCs vs Partnerships
Multi member LLCs are a type of LLCs that can either be a partnership or corporation, depending on what the members of the LLC elected or chose. According to the IRS, multi-member LLCs use partnership as their default entity and must be taxed as such. LLCs taxed as partnerships file Form 1065. While single member LLCs file Form 4868/1120, and not 1065.
Paper vs E-Filing: Which option to choose for filing Partnership Extensions?
| Paper Filing | E-filing with EZExtension | |
|---|---|---|
| Speed | 4 to 6 weeks of processing time | Processes the form in less than 24 hours |
| Proof of mail to recipient | USPS mailing receipt | IRS-stamped PDF sent directly to recipient inbox |
| Error Checking | None or Manual | AI-powered automatic error flagging |
| Cost | Printing + postage + mailing costs | Flat fee of $9.99 |
How to E-File with EZExtension (3-Step Workflow)
Step 1: Upload details
Enter partnership details like EIN, business name, or address by inputting it manually or importing it directly from your system.
Step 2: Review the form and pay taxes (if applicable)
Review the information of the form and use the AI error scan to flag any errors. If you have any tentative tax to be paid, you can pay it via EFW/EFTPS.
Step 3: Submit the form to the IRS to get an automatic extension
Once you fill out Form 7004 online and reviewed the information, you can transmit the form to the IRS to get your automatic 6-month filing extension.
Why EZExtension
The best way to file 1065 extension is by using EZExtension:
- 3-minute filing: File 7004 in minutes.
- AI Error Scan: Automatically review forms.
- Lowest Price: E-file for a flat fee of $9.99.
- Bulk EIN dashboard: Manage multiple extension filings.
- Free retransmit for rejected forms: Correct rejected forms at no extra charge.
- Encrypted data & security: SOC 2 Type II compliance & 256-bit encryption.
FAQs
1. How long is a partnership extension?
Filing a partnership extension gives you an additional 6 months to file Form 1065.
2. What IRS code for Form 1065 on 7004?
The IRS code for Form 1065 to be used in Form 7004 is Code 09.
3. Does 7004 extend partner K1 delivery?
No, Form 7004 does not extend K-1 delivery deadlines.
4. Can I e-file after March 15?
You cannot e-file after March 15. Form 7004 has to be filed on or before the original due date, Marh 15 for partnerships using calendar year.
5. Are state returns automatically extended?
It depends on the state. Some states automatically extend if you file federal 7004 form, while some have their requirements.
6. What is the penalty for late 1065?
The penalty for late filing of Form 1065 is $245 per partner, per month (or part of a month), up to 12 months maximum.
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