Filing deadlines for the 2022 tax year are fast approaching. Several changes have occurred in the Internal Revenue Code (IRC) and IRS procedures that could affect many partnerships and other businesses. The following provides an overview of some of these changes, as well as the deadlines for important tax filings.
Due Dates for 2022 Tax Filings
March 15, 2023
S Corporations
- Filing deadline for Form 1120-S
- A six-month extension is available if requested by this date
Partnerships
- Filing deadline for Form 1065, with the option of requesting a six-month extension
- Filing deadline for Form 8804, the partnership withholding tax return
- Filing deadline for Form 8805, the Foreign Partner’s Information Statement of Section 1446 Withholding Tax
- Filing deadline for Forms 1042 and 1042-S, which deal with income received by foreign persons from U.S. sources
- Deadline to provide copies of Forms 1042 and 1042-S to income recipients
- Deadline to file Form 7004 to request an automatic six-month extension for filing Forms 8804, 8805 and 1042
- Deadline to file Form 8809 to request an automatic six-month extension for filing Form 1042-S
- Deadline to file Form 8809 to request an automatic six-month extension for providing copies of Form 1042-S to income recipients
April 18, 2023
Corporations
- Filing deadline for Form 1120
- An automatic six-month extension is available if requested by this date
June 15, 2023
Corporations
- Filing deadline for Form 1120-F for corporations with no place of business in the U.S.
- An automatic six-month extension is available if requested by this date
K-2 and K-3 Penalties
The IRS finalized new rules regarding when Schedules K-2 and K-3 are required for the following returns:
- Form 1065 for partnerships;
- Form 1120-S for S-corporations; and
- Form 8865 for U.S. persons involved in foreign partnerships.
Prior to tax year 2022, taxpayers who made good-faith errors with regard to the K-2 and K-3 filing requirements could obtain relief from penalties for those errors. This relief will not be available for 2022.
The new IRS rules create limited exceptions for the Schedule K-2 and K-3 filing requirements, as discussed in more detail below. Partnerships and other businesses that are not covered by an exception may face the following penalties if they fail to fail these forms on time:
- Schedule K-2: $220 for each month that the form is late
- Schedule K-3: $290 for each form that is not filed in a timely manner
Business Meal Deductions
Normally, taxpayers can only deduct 50% of the cost of business-related meals. The Taxpayer Certainty and Disaster Relief Act of 2020 created a temporary exception to this rule. During tax years 2021 and 2022, businesses can deduct 100% of food and beverage expenses, provided that they incurred those expenses at restaurants.
If you have any questions or would like additional information, please contact DMJPS CPAs + Advisors.
David Mize, CPA
David is a Partner at DMJPS CPAs + Advisors in Tax Services. He is well versed in flow-through taxation, with specific expertise in real estate partnerships.
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