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

federal income tax purposes. Any federally approved change

Interest: Failure to pay estimated tax installments on or before

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

in accounting periods or methods must be reported to the

Department of Revenue. Attach a copy of the federal approval

an assessment of interest on the late payment or underpayment.

to the return when filed. KRS 141.140

The interest due on any late payment or underpayment shall

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

KRS 141.985

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

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

Other Information

141.220 and 103 KAR 15:050

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

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

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

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

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

business day. KRS 446.030(1)(a)

in the distribution of any income or other information provided

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

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

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

Check the Amended K-1 box on each Schedule K-1 to indicate

payment to Kentucky Department of Revenue, Frankfort, KY

that it is an amended Schedule K-1.

40620. Make the check payable to Kentucky State Treasurer.

Records Retention—The Department of Revenue deems

Extensions—An extension of time to file a partnership income

acceptable virtually any records retention system which results

and LLET return may be obtained by either making a specific

in an essentially unalterable method of records storage and

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

retrieval, provided: (a) authorized Department of Revenue

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

personnel are granted access, including any specialized

extension submitted after the return is filed does not constitute

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

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,

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

Internal Revenue Service Audit Adjustments—A partnership

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

which has received final adjustments resulting from Internal

Revenue Service audits must submit a copy of the “final

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

determination of the federal audit” within 30 days of the

date for payment of tax.

conclusion of the federal audit. Use Form 765 for reporting

federal audit adjustments and check the Amended Return

LLET Estimated Taxes

box.

The Corporation Income/Limited Liability Entity Tax Estimated

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

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

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

payments for LLET. If the partnership is required to make

return (determined without regard to extensions thereof). The

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

tax interest rate for 2013 is available online at

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

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

website at ky.gov.

564-8139 to obtain it.

NOTE: See ky.gov for information on the 2013

Penalties

estimated tax payments.

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

Estimated Tax Payments—A partnership must make estimated

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

tax installments if its tax liability under KRS 141.0401 can

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

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

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

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

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

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

Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions - 2012 Page 6

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