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5. Schedule F—Profit or Loss from Farming

If the estimated tax is reasonably expected to exceed $5,000

before the 2nd day of the 6th month, 50% of the estimated tax

6. Form 4562—Depreciation and Amortization (if required to be

must be paid by 15th day of the 6th month, 25% by the 15th day

filed)

of the 9th month, and 25% by the 15th day the 12th month.

7. Form 4797—Sales of Business Property

8. Form 4835—Farm Rental Income and Expenses

If the estimated tax is reasonably expected to exceed $5,000 after

the 1st day of the 6th month and before the 2nd day of the 9th

Electronic Funds Transfer (EFT)

month, 75% of the estimated tax must be paid by the 15th day

of the 9th month, and 25% by the 15th day the 12th month.

EFT is not available for a single member limited liability

company’s LLET payments, estimated tax payments, return

If the estimated tax is reasonably expected to exceed $5,000

payment or extension payment.

after the 1st day of the 9th month, 100% of the estimated tax

must be paid by the 15th day the 12th month.

Accounting Procedures—Kentucky income tax law requires

a taxpayer to report income on the same calendar or fiscal

year and to use the same methods of accounting required for

Safe harbor: A single member LLC can satisfy its declaration

federal income tax purposes. Any federally approved change

requirement if its estimated tax payments are equal to the tax

in accounting periods or methods must be reported to the

liability under KRS 141.0401 for the prior tax year, and its tax

Department of Revenue. Attach a copy of the federal approval

liability for the prior tax year was equal to or less than $25,000.

to the return when filed. KRS 141.140

If the estimated tax is based on the single member’s tax liability

for the prior tax year, 50% of the estimated tax must be paid

Filing/Payment Date—A Kentuck y Single Member LLC

by 15th day of the 6th month, 25% by the 15th day of the 9th

Individually Owned LLET Return must be filed and payment

month, and 25% by the 15th day the 12th month.

must be made on or before the 15th day of the fourth month

following the close of the taxable year. KRS 141.160, KRS 141.220

Interest: Failure to pay estimated tax installments on or before

and 103 KAR 15:050

the due date prescribed by KRS 141.042 and 141.044 shall result in

an assessment of interest on the late payment or underpayment.

If the filing/payment date falls on a Saturday, Sunday or a legal

The interest due on any late payment or underpayment shall

holiday, the filing/payment date is deemed to be on the next

be at the rate provided by KRS 131.183(1). KRS 141.042(4) and

business day. KRS 446.030(1)(a)

KRS 141.985

Mailing/Payment—Mail the return with payment to Kentucky

Other Information

Department of Revenue, Frankfort, KY 40620. Make the check

payable to Kentucky State Treasurer.

Amended Return—To correct Form 725 as originally filed,

Extensions—An extension of time to file a Kentucky Single

file an amended Form 725 and check the appropriate box on

Member LLC Individually Owned LLET Return (Form 725)

page 1.

may be obtained by either making a specific request to the

Department of Revenue on Form 41A720SL, Application for

Records Retention—The Department of Revenue deems

Six–Month Extension of Time to File Kentucky Corporation or

acceptable virtually any records retention system which results

Limited Liability Pass-through Entity Return, or attaching either

in an essentially unalterable method of records storage and

a copy of the Kentucky individual extension (Form 40A102) or

retrieval, provided: (a) authorized Department of Revenue

a copy of the federal individual extension (Form 4868) to the

personnel are granted access, including any specialized

return when filed. A copy of the federal extension submitted

equipment; (b) taxpayer maintains adequate back–up; and (c)

after the return is filed does not constitute a valid extension,

taxpayer maintains documentation to verify the retention system

and late filing penalties will be assessed. If the single member

is accurate and complete.

LLC is making a payment with its extension, Form 41A720SL

must be used. For further information, see the instructions for

Internal Revenue Service Audit Adjustments—A Kentucky

Form 41A720SL. 103 KAR 15:050

individually owned single member LLC which has received final

adjustments resulting from Internal Revenue Service audits

NOTE: An extension of time to file a return does not extend the

must submit a copy of the “final determination of the federal

date for payment of tax.

audit” within 30 days of the conclusion of the federal audit. Use

Form 725 for reporting federal audit adjustments and check the

LLET Estimated Taxes

Amended Return box.

The Corporation Income/Limited Liability Entity Tax Estimated

Interest—Interest at the tax interest rate is applied to the

Tax Voucher, Form 720–ES, is used to submit estimated tax

LLET liability not paid by the date prescribed by law for

payments for LLET. If the single member LLC is required to make

filing the return (determined without regard to extensions

estimated LLET payments but did not receive Form 720–ES,

thereof). The tax interest rate for 2012 is available online at

contact the Department of Revenue at (502) 564–3658 or visit

or you may contact the Department of

the website at .

Revenue at (502) 564–8139 to obtain the tax interest rate.

NOTE: See for information on the 2012

Penalties

estimated tax payments.

Estimated Tax Payments—A single member LLC must make

Failure to file an LLET return by the filing date including

estimated tax installments if its tax liability under KRS 141.0401

extensions—2 percent of the tax due for each 30 days or

can reasonably be expected to exceed $5,000. Estimated tax

fraction thereof that the return is late (maximum 20 percent).

installments are required as follows:

The minimum penalty is $10. KRS 131.180(1)

Instructions For Form 725 - Kentucky Single Member Llc Individually Owned Llet Return - 2011 Page 5

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