Everyone buckle your seat belts… there are new due dates for tax returns coming! The last time there was a due date change, there were temporary and proposed regulations in 2008 reducing the extension from 6 months to 5 months for Partnerships and Trusts, and those regulations became final in 2011. The latest change to the tax return due dates affects the first due dates, not just extended due dates, and this change comes from the highway funding bill passed by the Senate on Thursday, July 30, 2015. It is expected to be signed by President Obama shortly.
Partnerships – The new date is the 15th day of the third month following the close of the tax year, or March 15th for calendar year partnerships. The current due date for Partnerships is April 15th (or the 15th day of the fourth month following the close of the tax year).
Corporations – The new due date for C Corporations is the 15th day of the fourth month following the close of the corporation’s year. The current due date for C Corporations is March 15th (or the 15th day of the third month following the close of the tax year). The due date for S Corporations remains March 15th/15th day of the third month following the close of the tax year.
Extended Corporations – Corporations will be allowed a six-month extension (S Corporations until September 15th and C Corporations until October 15th) through 2025, and corporations with a June 30 year-end would get a seven-month extension through 2025.
When do these new due dates take effect, you ask? They apply for tax years beginning on or after January 1, 2016. However, for corporations with fiscal years ending on June 30, the new due dates do not apply until tax years beginning on or after January 1, 2026.
Please note that the due date for trusts was not changed; however, the act directs the IRS to modify its regulations to allow a maximum extension of 5-1/2 months for Form 1041, extending a calendar year end trust or estate to 9/30.
For anyone with a foreign bank account who is familiar with the reporting rules, the due date of FinCEN Form 114 is changed from June 30 to April 15. And for the first time ever, there is a six-month extension available.
While there are some confusing and complicated dates and year-ends, keep in mind that we are here to help. We are here to know about these rules and get everything taken care of for you – on time!
By Julie K. Weissmueller, CPA