The upcoming tax filing season is expected to start on time for everyone - except those folks affected by late enactment of the IRS Alternative Minimum Tax Patch. The IRS has targeted February 11, 2008 as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation. This delay will allow the IRS to update and test its systems.

The tax returns that include the following forms are affected by this filing delay:

• Form 8863, Education Credits
• Form 5695, Residential Energy Credits
• Schedule 2, Form 1040A, Child and Dependent Care Expenses for Form 1040A Filers
• Form 8396, Mortgage Interest Credit
• Form 8859, District of Columbia First-Time Homebuyer Credit

An LLC with two or more members is classified as a Partnership by the IRS for tax purposes, by default. The Partnership must file a tax Form 1065 - which is due by the 15th day of the fourth month following the end of the tax year. Since a Partnership is not a taxable entity - the income, deductions and credits pass through to each partner. Each partner would receive a K-1 - which is then incorporated into the individual tax return of the partner. Currently, a penalty of $50 per month, per partner - with a $250 per partner maximum - is imposed on partnerships that do not timely file their returns. However, this penalty for “failure to file” was increased to $85 per month with new tax laws enacted in December 2007.

A single member LLC will be classified as a disregarded entity by default and will file a Schedule C for tax purposes. The Schedule C is attached to the members individual 1040 tax return and is due by the 15th day of the fourth month following the end of the tax year. (April 15th)

To change a default entity tax classification, Form 8832 (Entity Classification Election) can be filed with the IRS.