Revised Due Dates for Partnership and C Corporation Returns
In a major restructuring of tax return due dates, effective generally for tax years beginning after December 31, 2015 (i.e. 2016 tax returns):
- Partnerships and S corporations will have to file their returns by the 15th day of the third month after the end of the tax year. Thus, entities using a calendar year will have to file by March 15 of the following year. In other words, the filing deadline for partnerships will be accelerated by one month; the filing deadline for S corporations stays the same. By having most partnership returns due one month before individual returns are due, taxpayers and practitioners will generally not have to extend for this reason.
- C corporations will have to file by the 15th day of the fourth month after the end of the tax year. Thus, C corporations using a calendar year will have to file by April 15 of the following year. In other words, the filing deadline for C corporations will be deferred for one month.
Keep in mind that these important changes to the filing deadlines generally won’t go into effect until the 2016 returns have to be filed. Under a special rule (which makes no sense) for C corporations with fiscal years ending June 30, the change is deferred for ten years — it won’t apply until tax years beginning after December 31, 2025.
Also note that not all states have conformed to these new filing deadlines.
Revised Extended Due Dates for Various Returns
Taxpayers who can’t file a tax form on time can ask the IRS for an extension to file the form. Effective for tax returns for tax years beginning after December 31, 2015, the new law directs the IRS to modify its regulations to provide for a longer extension to file a number of forms, including the following:
- Form 1065 (U.S. Return of Partnership Income) will have a maximum extension of six months (currently, a five month extension applies). The extension will end on September 15 for calendar year taxpayers.
- Form 1041 (U.S. Income Tax Return for Estates and Trusts) will have a maximum extension of five and a half months (currently, a five month extension applies). The extension will end on September 30 for calendar year taxpayers.
FinCEN Report Due Date Revised
Taxpayers with a financial interest in or signature authority over certain foreign accounts must file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
Under the new law, for returns for tax years beginning after December 31, 2015, the due date of FinCEN Report 114 will be April 15 with a maximum extension for a six month period ending on October 15. The IRS may also waive the penalty for failure to timely request an extension for filing the Report, for any taxpayer required to file FinCEN Form 114 for the first time.
Individual Income Tax Returns
There have been no changes to the filing date or extensions for individual income tax returns. The filing deadline for 2016 individual income tax returns is April 18, 2017 and returns can be extended to October 16, 2017.
If you would like more details about these changes or any other aspect of the new law, please contact your tax professional at our office.