Does Pennsylvania Accept Federal Extension for Partnerships?
Understand how to use a federal extension for your PA partnership return and the key procedural steps required for state tax payment and compliance.
For partnerships, circumstances can sometimes make it difficult to gather all necessary information to file by the original deadline. Requesting an extension is a common and practical step to ensure an accurate and complete tax return.
Pennsylvania’s Extension Policy for Partnerships
Pennsylvania simplifies the extension process for partnerships by accepting a federally filed extension. If a partnership secures a valid federal extension by filing Form 7004 with the IRS, Pennsylvania automatically honors it for the state return. This means a separate state-specific extension form is not required, provided the federal extension is in place. The state grants a five-month extension for partnerships to file their PA-20S/PA-65 Information Return.
This extension of time to file, however, is not an extension of time to pay any taxes owed. Partnerships must estimate their tax liability and remit the full amount by the original due date, which is typically the 15th day of the fourth month after the end of the tax year. Failure to pay the tax by this deadline will result in the assessment of interest and potential penalties on the underpayment amount, even if a valid filing extension is secured.
An underpayment penalty may apply if the tax paid by the original due date is less than 90 percent of the total tax liability determined when the return is ultimately filed. Therefore, a careful and reasonable estimation of the tax due is a necessary part of the extension process.
How to Secure the Extension and Make Payments
The first action for a partnership is to timely file Form 7004 with the IRS. This single federal action establishes the right to a filing extension with Pennsylvania.
Even with an extension to file, payment is still due by the original deadline. To remit the estimated tax, partnerships should use Form REV-276, the Application for Extension of Time to File, which also serves as a payment voucher. This form should accompany a check mailed to the PA Department of Revenue. Alternatively, payments can be made electronically through the state’s myPATH online portal, which is required for any payments of $1,000 or more.
When the partnership is ready to file its complete PA-20S/PA-65 Information Return, it must include a copy of the filed federal Form 7004. This attachment serves as proof to the Pennsylvania Department of Revenue that a valid extension was obtained.