If your “S” corporation or your Limited Liability Company (LLC) submitted a 6-month extension request on March 15, 2020, below are provided further details such as to how the dates are set for the different classes of organizations:
S Corporations: September 15
Single Member LLC: Oct 15
LLC with multiple members: September 15
Most LLCs (Limited Liability Corporations) are NOT corporations. For an LLC to become a corporation, it must file a special application with the IRS. If you made this request, you would probably remember it. If you didn`t, then your LLC is not a corporation.
You have to be clear if your LLC is a single member, then this is a single owner LLC. The Internal Revenue Service does not consider your LLC; therefore, the IRS ignores them and does not allow you to do the taxes as an LLC, being so, all the activities of your LLC have to be reported on your individual taxes. Therefore, this activity must be reported on October 15, in case you have filed an extension on April 15.
A very important aspect for multi-member LLCs is that, if the business is solely for rental of properties, this activity has to be divided proportionally among the members. So that each member can report their corresponding portion on their individual tax returns. To be safe, you need to file your LLC taxes. All the others LLCs, different from property rental activities, are LLCs.
If you have an S-corporation with a valid extension then you must present it immediately. Otherwise, they will apply harsh penalties. It`s $195 per month, per member. If you did not request an extension, the fine will continue to accrue, from the original deadline of March 15. With 2 partners (or shareholders), it would be a fine of $3,500. Yes, that`s right it`s three THOUSAND dollars. Therefore, it is recommended to do your tax return as soon as possible. At least that way you will prevent the huge penalties from piling up much more.
Finally, if you are not ready to do your tax report and your documents and records are a mess, it is recommended to do your taxes as soon as possible based on the best estimates, even if you make an amendment later, at least that way you will not have to worry about additional penalties.