On September 9, 2019, the Kentucky Department of Revenue (Department) issued guidance that it would extend the return due date for certain corporate taxpayers an additional 30 days.

Background

During the 2019 legislative session, the Kentucky Legislature amended Ky. Rev. Stat. Section 141.170, enacting a new seven-month extension for C corporations, effective June 27, 2019. (Prior law provided for a six-month extension.) Accordingly, C corporations that file a valid extension on or after June 27, 2019, have a seven-month extension.

Department guidance

In its guidance, the Department said any corporate taxpayer that filed an extension before June 27, 2019, will also be granted a seven-month extension. (The 2018 forms and instructions, however, do not state this revised due date.) In addition, the Department will waive any late filing penalties for taxpayers that filed extension requests before June 27, 2019, if they file their return no later than 30 days after the extended due date.

Implications

The Department's guidance gives corporations that filed a proper extension before June 27, 2019, an additional 30 days to file their 2018 Kentucky Form 720 corporation tax. This will prevent the late filing penalty from applying to eligible filers. Additional interest and penalties for late payment, however, will continue to apply. The Department's guidance can be found here.

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