IRS Notice CP162 on Partnership Return

[jenriley311]

hello! I have a partnership that was terminated in June 2019.  I filed an extension for the Form 1065 return 3/5/20.  I filed the final return 6/9/20.  I received an IRS notice  CP162 stating the return was filed late.  Is the extension not valid because the partnership was terminated?  Should the return have been filed 90 days from June 2019?  Thank you fellow Turbo Tax community!

[Anonymous]

since the partnership return was terminated in June 2019, the final return was due by 9/15/2019 2.5 months after the June year-end.  your choices are to pay the penalty or ask for a waiver (penalty not interest) claiming lack of knowledge and first time filing return late (if late before just pay).  it's up to the IRS to make a decision as to whether or not they will honor the request.  

[jenriley311]

How could a final return have been filed when the software and forms were not available?  Asking this more or less for future knowledge, as we did form a new partnership.  Thank you!!

[Anonymous]

you use the 2018 tax forms if the 2019 forms are not out and specify a year beginning 1/1/19 and ending 6/30/2019 9 or whatever the actual date was. 

[jenriley311]

Thank you Hackitoff!  Great info!

[tagteam · Accepted solution]

The partnership’s tax year ends on the date of termination which is the date the partnership winds up its affairs.

See https://www.irs.gov/instructions/i1065#idm140672607553008

For future reference:

Generally, a domestic partnership must file Form 1065 by the 15th day of the 3rd month following the date its tax year ended....

See https://www.irs.gov/instructions/i1065#idm140672607526672

The 2019 Form 1065 may also be used if:

1. The partnership has a tax year of less than 12 months that begins and ends in 2020, and

2. The 2020 Form 1065 isn't available by the time the partnership is required to file its return.

See https://www.irs.gov/instructions/i1065#idm140672607514640