When do I file Taxes for an Investment Club structured as a General Partnership?

Question

Background: The EIN was assigned in May 2005 and the IC began conducting business (buying stock) in June 2005. The IC filed its taxes on April 3, 2006 (sent in the 1065 and SK1s for all Partners). Each Partner filed their personal taxes (including their SK1) before April 15. The IC Treasurer claimed that he received a letter from the IRS a few months later that the the taxes were filed late (being a General Partnership caused the filing date to be different) and the IRS wanted a $50/Partner fee. He protested and the IRS reduced to a single $50 fee because the taxes are the Treasurers responsibility. Now, August 2008, he is claiming to have received a letter from the IRS for $2000 in "unpaid taxes." There were five members in 2005 so I didn't consider any fowl play when there was only a $50 fee, but now I am a little concerned. I haven't asked to see the $2000 fee notice, but neither the President or the Treasurer can find the IRS correspondence from 2006 nullifying the original fees. I should have been more proactive 2 years ago, but my knowledge on the subject matter has increased exponentially in the past few months.

Why would there ever have been a different filing date? A general partnership should conform to the individual members' tax year and I can't find anything in Publication 541 that would indicate otherwise.

Answer 1

A Partnership return is due on the 15th day of the 4rd month following the end of the fiscal year.  If the Partnership is on a calendar year basis, that makes the filing deadline April 15th.  I have no idea where you get the thought that it would conform to the partners individual tax years; there is no truth in that whatsoever.  If it was filed on April 3rd and was late, it must not have been on a calendar year basis.

You need to see copies of ALL of the correspondence from the IRS.  ALL of the GPs do!  You are ALL liable for any taxes, fines, penalties, interest, etc. levied by the IRS!