Kentucky Form 720 Extension: A Step-By-Step Filing Guide

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As a business owner in Kentucky, it's essential to stay on top of your tax obligations to avoid penalties and fines. One crucial aspect of this is filing your annual tax return, Form 720, with the Kentucky Department of Revenue. However, sometimes unforeseen circumstances may arise, making it impossible to meet the deadline. That's where a Kentucky Form 720 extension comes into play. In this comprehensive guide, we'll walk you through the process of filing for an extension, ensuring you avoid any potential pitfalls and stay compliant with state tax regulations.

Understanding Kentucky Form 720 and the Need for an Extension

Kentucky Form 720 is the annual tax return form for businesses operating in the state. It's used to report income, deductions, and credits for the tax year. The deadline for filing Form 720 typically falls on the 15th day of the fourth month following the close of the tax year. For example, if your business operates on a calendar-year basis, the deadline would be April 15th.

However, if you're unable to file your tax return by the deadline, you can request an automatic six-month extension by filing Form 720EXT. This will push your filing deadline to the 15th day of the tenth month following the close of the tax year.

Who Qualifies for a Kentucky Form 720 Extension?

Any business required to file Form 720 can request an extension. This includes:

• Corporations (both domestic and foreign)
• Limited liability companies (LLCs)
• Partnerships
• S corporations
• Estates and trusts

To qualify for an extension, your business must meet the following requirements:

• You must file Form 720EXT by the original deadline (15th day of the fourth month following the close of the tax year)
• You must pay any estimated tax due by the original deadline
• You must file your completed Form 720 by the extended deadline (15th day of the tenth month following the close of the tax year)

Step-by-Step Guide to Filing a Kentucky Form 720 Extension

Filing for a Kentucky Form 720 extension is a straightforward process. Here's a step-by-step guide to help you navigate the process:

1. Determine Your Eligibility: Review the requirements mentioned earlier to ensure you qualify for an extension.
2. Gather Required Documents: You'll need to provide your business's name, address, and federal employer identification number (FEIN) on Form 720EXT.
3. Complete Form 720EXT: Fill out the form accurately, ensuring you provide all required information.
4. Pay Estimated Tax Due: You must pay any estimated tax due by the original deadline to avoid penalties and interest.
5. File Form 720EXT: Submit Form 720EXT to the Kentucky Department of Revenue by the original deadline.

Payment Options for Estimated Tax Due

You can pay your estimated tax due using one of the following methods:

• Electronic Funds Transfer (EFT)
• Check or money order made payable to the Kentucky State Treasurer
• Credit card (American Express, Discover, Mastercard, or Visa)

Consequences of Not Filing a Kentucky Form 720 Extension

Failure to file Form 720EXT by the deadline can result in penalties and interest on any tax due. The penalties can be substantial, including:

• Late filing penalty: 5% of the unpaid tax due for each month or part of a month, up to a maximum of 25%
• Late payment penalty: 5% of the unpaid tax due for each month or part of a month, up to a maximum of 25%
• Interest on unpaid tax due: accrues at a rate of 8% per annum

Avoiding Penalties and Interest

To avoid these penalties and interest, it's essential to:

• File Form 720EXT by the original deadline
• Pay any estimated tax due by the original deadline
• File your completed Form 720 by the extended deadline

Additional Resources and Contact Information

If you have any questions or concerns about filing a Kentucky Form 720 extension, you can contact the Kentucky Department of Revenue:

• Phone: (502) 564-4581
• Email:
• Website: revenue.ky.gov

Stay Compliant with Kentucky Tax Regulations

Filing a Kentucky Form 720 extension can provide your business with the necessary time to complete its tax return. By following the step-by-step guide outlined in this article, you can ensure a smooth and successful filing process. Remember to stay compliant with Kentucky tax regulations to avoid penalties and interest.

We hope this comprehensive guide has provided you with the necessary information to navigate the Kentucky Form 720 extension process. If you have any further questions or concerns, please don't hesitate to reach out.