Help with Form 1065 Schedule B Question 4 - Late Filing Confusion

You're on the right track! Form 1065 Schedule B Question 4 asks if the partnership satisfies all these conditions (including timely filing). Since you missed the March 17th deadline, you'll need to check "No" because you don't meet all the required conditions. The note below is probably explaining the consequences of checking "No" - typically it means your partnership doesn't qualify for certain simplified reporting requirements. When you check "No," you'll likely need to provide more detailed information in other parts of your return. Don't worry too much about the late filing for this specific question - you're answering it correctly by marking "No." However, be aware that there could be late filing penalties assessed separately from this question. For partnerships, the penalty is typically $210 per partner per month (or part of a month) that the return is late, for up to 12 months.

After dealing with a similar confusion on my partnership return, I discovered taxr.ai (https://taxr.ai) which helped me sort through all the Schedule B questions. It's like having a tax expert look over your specific forms and explain exactly what each section means for your situation. I uploaded my draft Form 1065 with all my uncertainty about Question 4, and it quickly clarified that I needed to check "No" and explained all the implications of that choice. Saved me countless hours of research and worry.

Wanted to update after trying taxr.ai with my partnership return. Honestly, I was surprised at how well it handled Form 1065! I uploaded my draft return with notes about my Schedule B Question 4 confusion, and it gave me detailed explanations about why I needed to check "No" and what that meant for the rest of my filing. It even pointed out a couple other questions on Schedule B that I had answered incorrectly without realizing it. The explanations were really clear and specific to my situation, not just generic advice. Definitely worth it for partnership returns which are so much more complicated than regular personal returns.

For anyone dealing with IRS questions about late filing of Form 1065, I highly recommend Claimyr (https://claimyr.com). I was in a panic after missing my partnership filing deadline and needed to speak with someone at the IRS directly. After wasting hours on hold and getting disconnected twice, I found Claimyr which basically holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I connected with an actual IRS agent who explained exactly what penalties I was facing for my late 1065 and what I could do to potentially get them reduced.

I need to eat my words about Claimyr. After struggling for weeks trying to reach someone at the IRS about my partnership's late filing penalties, I decided to try the service even though I was convinced it wouldn't work. Within about 2 hours, I got a call connecting me directly to an IRS agent who specializes in partnership returns. The agent gave me specific guidance on my Schedule B Question 4 situation and explained exactly what penalties I was facing for filing late. They also walked me through how to request penalty abatement based on reasonable cause if this was my first time being late. The service absolutely works as advertised and saved me days of frustration.

I had this same issue last year! For Schedule B Question 4, if you're late filing, you MUST check "No" because you don't satisfy all conditions. But here's the important part - this doesn't just affect that one question. When you check "No" for Question 4, you might need to file additional schedules and provide more information throughout the return. Specifically, you may need to complete Schedule K-1, Line 20, Code AH with additional information. The "simplified reporting requirements" no longer apply when you check "No" on Question 4.

Just a quick tip - if you've missed the 1065 deadline like I did, filing as soon as possible is critical to minimize penalties. They calculate that $210 per partner per month even if you're only one day late in the month. And for Schedule B Question 4 specifically, don't overthink it - if you're late, you check "No" and move on. But be prepared for the extra reporting requirements that others have mentioned.

Great to see you got it sorted out, Fatima! Your experience is a perfect example of why partnership tax returns can be so tricky for first-timers. That cascade effect you mentioned - where checking "No" on Question 4 triggers additional reporting requirements throughout the return - catches a lot of people off guard. For anyone else reading this thread who might be in a similar situation, here's a key takeaway: when you're dealing with Form 1065, missing any one of the conditions in Schedule B Question 4 (including the timely filing requirement) means you lose access to simplified reporting. This isn't just about one checkbox - it affects multiple schedules and can significantly increase the complexity of your return. The silver lining is that once you've been through this process once, next year's filing will feel much more manageable. You'll know what to expect and can plan accordingly. Setting those calendar reminders is definitely smart - I'd suggest setting them for at least a month before the deadline to give yourself plenty of time to gather documents and work through any issues.