If you read about the due dates of all of the different types of tax returns changing, you are probably wondering how these changes affect you.
If you have a C Corporation, the due date is pushed back to the fourth month following the end of the year. This will change the due date of tax payments as well. Likely, you will want to proceed with business as usual to stay on top of potential tax owed and get the books cleaned up so you can move on to the next year.
If you have a partnership, these will be due a month sooner than usual. This could cause potential problems for investment partnerships, in particular, as some brokerage Forms 1099 are not available until after the due date. Hopefully those 1099s arrive quickly to get a good estimate of tax owed by the April 15th due date of the owner(s). Obviously, a regular partnership will need to adjust its calendar a bit to file on time. No tax is paid with partnership returns, and the owners’ returns are not due until April 15th.
Since the tax deadline for trusts was not changed, there is still a need for trusts to get done ahead of the April 15th deadline to get an income number or estimate to beneficiaries, or to pay tax at the trust level. The trusts that own interests in partnerships will be better off, however, because the K-1s should arrive earlier, as long as the partnership return is filed by its original due date. The extended due date for partnerships remains on the same date – September 15th for calendar-year-ends, and the extended due date for trusts changes to September 30th (or 5 ½ months after the original due date of the return). This change in the extended due dates for trusts allows K-1s to arrive from partnerships for completion of the trust return, plus time to get the trust K-1 to individuals to file by their extended due date.
For individuals having signature authority over a foreign bank account, the FinCEN Form 114 is due April 15th, much sooner than the current June 30 due date. However, it can be extended until October 15th.
We will be on top of these changes and let our clients know how they are affected specifically, but it is always good to be aware ahead of time.
By Julie K. Weissmueller, CPA