Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions

Filing/Payment Date—A partnership return must be filed and

Other Information

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

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

Amended Return—To correct Form 765 as originally filed, file an

141.220 and 103 KAR 15:050

amended Form 765 and check the appropriate box on page 1. If

the amended return results in a change in income or a change

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

in the distribution of any income or other information provided

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

to partners, an amended Schedule K-1 (Form 765) must also be

business day. KRS 446.030(1)(a)

filed with the amended Form 765 and given to each partner. Check

the Amended K-1 box on each Schedule K-1 to indicate that it is

Mailing/Payment—Mail the return with the partnership’s LLET

an amended Schedule K-1.

payment to Kentucky Department of Revenue, Frankfort, KY

40620. Make the check payable to Kentucky State Treasurer.

Records Retention—The Department of Revenue deems

acceptable virtually any records retention system which results

Extensions—An extension of time to file a partnership income

in an essentially unalterable method of records storage and

and LLET return may be obtained by either making a specific

retrieval, provided: (a) authorized Department of Revenue

request to the Department of Revenue or attaching a copy of the

personnel are granted access, including any specialized

federal extension to the return when filed. A copy of the federal

equipment; (b) taxpayer maintains adequate back-up; and

extension submitted after the return is filed does not constitute

a valid extension, and late filing penalties will be assessed.

system is accurate and complete.

If the partnership is making a payment with its extension,

Internal Revenue Service Audit Adjustments—A partnership

Kentucky Form 41A720SL must be used. For further information,

which has received final adjustments resulting from Internal

see the instructions for Form 41A720SL. 103 KAR 15:050

Revenue Service audits must submit a copy of the “final

determination of the federal audit” within 30 days of the

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

conclusion of the federal audit. Use Form 765 for reporting

date for payment of tax.

federal audit adjustments and check the Amended Return

box.

LLET Estimated Taxes

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

The Corporation Income/Limited Liability Entity Tax Estimated

liability not paid by the date prescribed by law for filing the

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

return (determined without regard to extensions thereof). The

payments for LLET. If the partnership is required to make

tax interest rate for 2012 is available online at

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

ky.gov, or you may contact the Department of Revenue at (502)

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

564-8139 to obtain it.

website at ky.gov.

Penalties

NOTE: See ky.gov for information on the 2012

estimated tax payments.

Failure to file a Kentucky Income and LLET Return by the filing

date including extensions—2 percent of the LLET due for each

Estimated Tax Payments—A partnership must make estimated

30 days or fraction thereof that the return is late (maximum 20

tax installments if its tax liability under KRS 141.0401 can

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

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

installments are required as follows:

Jeopardy Fee—A $100 minimum penalty on all nonfiled returns,

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

when the taxpayer fails to file a return or provide information

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

after being requested to do so by the Department of Revenue.

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

KRS 131.150(2)

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

Failure to pay LLET by the payment date—2 percent of the LLET

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

due for each 30 days or fraction thereof that the payment is

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

overdue (maximum 20 percent). The minimum penalty is $10.

the 9th month, 75% of the estimated tax must be paid by the

KRS 131.180(2)

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

month.

Late payment or underpayment of estimated tax—10 percent

of the late payment or underpayment. The minimum penalty

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

is $25. KRS 131.180(3)

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

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

Failure or refusal to file a Kentucky Income and LLET Return

or furnish information requested in writing—5 percent of the

Safe harbor: A partnership can satisfy its declaration

tax assessed for each 30 days or fraction thereof that the return

requirement if its estimated tax payments are equal to the tax

is not filed or the information is not submitted (maximum 50

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

percent). The minimum penalty is $100. KRS 131.180(4)

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

If the estimated tax is based on the partnership’s tax liability

Negligence—10 percent of the tax assessed. KRS 131.180(7)

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

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

Fraud—50 percent of the tax assessed. KRS 131.180(8)

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

Cost of Collection Fees

Interest: Failure to pay estimated tax installments on or before

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

(a) 25 percent on all taxes which become due and owing

an assessment of interest on the late payment or underpayment.

for any reporting period, regardless of when due. These

The interest due on any late payment or underpayment shall

collection fees are in addition to all other penalties provided

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

by law. KRS 131.440(1)(a)

KRS 141.985

Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions - 2011 Page 6

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