Key Takeaways
- The tax deadline for partnerships to file their 2024 taxes is March 17, 2025.
- The deadline to file for an extension is also March 17, 2025—you can request an extension automatically by filing Form 7004. Then your tax filing deadline will be September 15, 2025.
- Filing for an extension gives you more time to file, but any taxes you owe are still due by the March 17 due date.
- Partnerships must also make four estimated tax payments throughout the year.
Partnership tax filing deadline for 2025
The standard partnership tax filing deadline falls on March 15 each year. However, since March 15, 2025, is a Saturday, the filing deadline for partnerships and multi-member LLCs (taxed as partnerships) will fall on the next business day, which is Monday, March 17, 2025.
However, if a partnership’s fiscal tax year differs from the calendar year, the due date shifts accordingly. In that case, your partnership tax filing deadline would land on the 15th day of the third month after the close of the partnership’s tax year.
Who does this deadline apply to?
The March 17, 2025 deadline applies to tax forms for partnerships—limited liability partnerships (LLPs), limited partnerships (LPs), general partnerships (GPs), and multi-member limited liability companies that file taxes as partnerships. S-corporations and C-corporations must also file on this date.
How to file for an extension as a partnership
If a partnership needs additional time to file, you can file for an extension, just as you can for your personal tax return.
To request an extension, partnerships must submit Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns) by March 17, 2025. Filing this form gives your business an automatic six-month extension to file, which means your tax return would be due on September 15, 2025. This extension can be especially useful for partnerships needing additional time to compile information for Schedule K-1, Form 1065 (U.S. Return of Partnership Income).
Note that a tax extension only applies to filing your federal tax return—it does not grant an extension for paying taxes you owe. Any unpaid taxes due must be paid by the original March deadline to avoid penalties and interest charges.
How are partnerships taxed?
Partnerships are considered "pass-through" entities, meaning that the income, deductions, and credits of the business pass through to the individual partners. Each partner then reports their share of the partnership’s profits or losses on their personal tax return. This system has both advantages and complexities that make it distinct from the way other business structures, like corporations, are taxed.
1. The basics of pass-through taxation
Since partnerships themselves don’t pay federal income tax, they don’t face the “double taxation” associated with corporations (where income from c corporation is taxed once at the corporate level and again on individual shareholder dividends). Instead, a partnership files an informational return using Form 1065 (U.S. Return of Partnership Income) to report the partnership’s income, deductions, gains, and losses. The information from Form 1065 is then distributed to each partner via a Schedule K-1.
Each partner’s share of the partnership’s income, as indicated on their Schedule K-1, is included in their personal federal tax return, regardless of whether the income was actually distributed to them. This means that even if partners leave profits within the business rather than withdrawing them, they still need to report that income on their personal income taxes anyway.
2. Self-employment taxes
Just like sole proprietors and sole proprietorships, partnerships are also subject to self-employment taxes on their share of the partnership's earnings. Self-employment tax covers Social Security and Medicare contributions, similar to payroll taxes that employees pay. However, this tax typically applies only to general partners who participate in the day-to-day operations of the partnership. Limited partners, who typically have a passive role, may not owe self-employment taxes on their share of income from the partnership.
3. Types of income and deduction allocation
One benefit of partnerships is flexibility in allocating income and deductions among partners, although allocations must generally be made according to each partner’s ownership interest unless the partners agree otherwise. Allocations can include different types of income, such as ordinary business income, interest, dividends, and capital gains, all of which are passed to the partners and retain their tax characteristics on individual tax returns.
4. Tax benefits for partnerships
The pass-through nature of partnerships also allows for certain tax benefits. For instance, partners may be eligible for the Qualified Business Income (QBI) deduction, which allows a deduction of up to 20% of qualified business income for eligible pass-through entities. However, the QBI deduction has limitations based on the type of income and the partner’s personal income level.
5. State and local taxes
While partnerships avoid federal income tax at the entity level, state and local tax obligations vary. Some states impose their own income tax or franchise tax on partnerships, while others require partnerships to withhold state income tax on behalf of non-resident partners.
How do partnerships file taxes?
To report income, deductions, and other financial details, partnerships file Form 1065 (U.S. Return of Partnership Income). Here’s how to complete the process:
1. Gather your financial information: Start by organizing all your partnership’s income, expenses, and other financial data from the previous tax season or year.
2. Complete Form 1065: Form 1065 is the main tax form for partnerships. It reports the partnership's income, deductions, gains, and losses.
3. Prepare Schedule K-1 for business taxes for each partner: The business must also prepare a Schedule K-1 for each partner. This form details each partner’s share of the partnership’s income, deductions, and credits. Each partner will use this form to report their share of the partnership income on their personal tax returns.
4. Submit Form 1065: Once Form 1065 and Schedule K-1s are prepared, file them with the IRS by the March 17 deadline, or by September 15 if an extension was requested.
How Bench can simplify your partnership tax filing
Keeping up with tax deadlines is a crucial step to managing your business—but do you really want to spend hours handling your bookkeeping and filing taxes? That’s where Bench comes in.
With Bench’s monthly bookkeeping services, your business is tax-ready from the start. We close your books and provide a year-end financial package with everything a tax professional needs to file accurately. Need even more support? With our tax filing and advisory services, we’ll handle the entire tax filing process for you. Plus, you’ll get unlimited, on-demand consultations with a tax professional, so you can make decisions with clarity and confidence.
Additional partnership tax deadlines to remember
Alongside the primary filing deadline, partnerships must also adhere to other key tax-related deadlines. Here’s a breakdown:
Estimated tax payments
Partnerships, like other business entities, must pay estimated taxes quarterly. Quarterly taxes are due on:
- April 15, 2025
- June 15, 2025
- September 15, 2025
- January 15, 2026
- For more details on these deadlines, check out our full guide to estimated tax payments.
Other important tax deadlines
- Filing W-2 forms: Partnerships with employees must submit W-2 forms to the IRS and Social Security Administration by January 31, 2025.
- Filing Form 1099-NEC: If your partnership paid $600 or more to independent contractors, you must file Form 1099-NEC by January 31, 2025.
- Sales taxes: Sales taxes are state taxes, which means your filing date will vary based on your location. If you sell online, pay attention to where you have sales tax nexus. You may be responsible for filing sales taxes in multiple states.
- Excise taxes: Businesses must pay federal excise taxes on certain products like gasoline, alcohol, and tobacco. You report and pay excise taxes quarterly using IRS Form 720. These forms are due on April 30, July 31, and October 31, 2025, with the final quarter being submitted January 31, 2026.
- Payroll taxes: If you run payroll, you'll need to submit forms covering Medicare, Social Security, and unemployment taxes. The IRS provides a rundown of when payroll tax returns are due.
Keeping these due dates in mind ensures that you avoid penalties and keep your partnership tax obligations on track.
What happens if I miss the partnership tax filing deadline?
If you miss the tax filing deadline, it's important to remedy the situation as soon as possible. Here's what you need to know:
- File as soon as possible, even if you can't pay: Filing late means you’re already subject to penalties, but filing sooner will minimize them. Even if you can't pay everything you owe, filing on time or as close to on time as possible is critical. That's because the failure-to-file penalty is 5 percent of the total tax owed, while failure-to-pay is much less—0.5 percent of total tax owed.
- Failure to furnish Schedule K-1 penalty: If you miss the deadline, you’ll also face penalties if you don’t provide each partner with their Schedule K-1 (which details their share of the partnership’s income, deductions, and credits) on time. Partners need this form to complete their individual tax filings.
- Consider penalty relief options: The IRS may waive penalties if you have a reasonable cause for missing the deadline, such as an unforeseen event or serious illness. If you believe you qualify, you can file a request for penalty abatement with an explanation.
Partnership tax penalties
Partnership tax penalties vary depending on the type and extent of the delay. Here are a few common penalties:
- Late filing penalty: The IRS charges a late filing penalty for partnerships that miss the filing deadline. This penalty is based on the number of months late, multiplied by the number of partners. In 2024, that penalty is $235 for each partner for each month that the return was late, for up to 12 months.
- Failure to furnish Schedule K-1 penalty: If you don’t provide Schedule K-1s to partners by the due date, the penalty is $260 for each K-1 that was not provided.
Staying informed of tax deadlines and filing requirements is essential for any partnership or multi-member LLC. The 2025 tax deadlines begin with the March 17 filing deadline, extend to quarterly estimated tax payments, and culminate in the September 15 tax deadline for those who requested an extension.
