Near the end of the 2019 legislative session, the Kentucky General Assembly passed HB 354, frequently referred to as the “clean-up” bill aimed at clarifying some of the sweeping tax law changes enacted during the 2018 legislative session. Signed by Governor Bevin on March 26, 2019, HB 354 contains several provisions of note to business taxpayers, though many of the changes won’t go into effect for several months. However, corporations and limited liability pass-through entities should mark their calendars for one big upcoming deadline: HB 354 moves the deadline for the first 2019 estimated tax payments up 2 months to April 15.
Previously, calendar-year corporations and limited liability pass-through entities were required to make their first yearly estimated tax payment for 50% of the tax on June 15, with the remaining 25% payments due September 15 and December 15. HB 354 changes the law to line up the estimated tax payment deadlines with those required to be made for federal income tax purposes. So, calendar-year corporations and limited liability passthrough entities should expect to make quarterly estimated payments on April 15, June 15, September 15, and December 15.
Taxpayers are encouraged to begin preparing for this new deadline. Those with questions about how to calculate and remit their estimated tax payments or those with concerns about how HB 354 and other Kentucky tax legislation enacted this session may affect them should consult with a tax professional.