On July 31, 2015, President Obama signed into law P.L. 114-41, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.” This included many updated tax provisions, including revised due dates for partnership and C corporation returns as well as revised extended due dates for several tax returns. This article includes an overview of these new tax provisions.
New Due Dates for Partnership and C Corporation Returns
Currently corporations (including S corporations) must file their returns by the 15th day of the third month after the end of their tax year. For corporations using a calendar year, the due date currently is March 15. Partnership tax returns have been due on the 15th day of the fourth month after the partnership’s tax year, or April 15 for calendar year partnerships.
Under the new law, effective generally for returns filed for tax years beginning after December 31, 2015, the new filing dates are:
- Partnership and S corporation returns will be due by the 15th day of the third month after the end of the tax year, or March 15 for calendar year entities. S corporation deadlines remain the same as under current law, but partnership returns are due one month earlier than they were previously.
- C corporation returns will be due by the 15th day of the fourth month after the end of the tax year, or April 15 for calendar year entities.
These new filing dates generally will not go into effect until the 2016 returns have to be filed. There is also a special rule for certain C corporations with fiscal years ending on June 30 – the change will not apply until tax years beginning after December 31, 2025.
New Extended Due Dates for Various Returns
Effective for tax years beginning after December 31, 2015, the new law includes a longer extension period for a number of tax returns. To qualify, a taxpayer must have filed an application for an automatic extension by the original due date of the tax return.
Partnership returns (Form 1065) will have the same extended due date as under current law, or September 15. However, the new laws allows for a maximum extension of six months. Current law only allows for a five month extension.
Trust and estates filing Form 1041 will have a maximum extension of five and a half months under the new law. Under current law these returns can only extend for five months. The extended due date will be September 30 for calendar year taxpayers.
The Form 5500 series (Annual Return/Report of Employee Benefit Plan) will have a maximum extension of three and a half months. Under current law these returns can be extended for two and a half months. The extended due date will be November 15 for calendar year filers.
New Due Date for FinCEN Report
Taxpayers with a financial interest or signature authority over certain foreign financial accounts must file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Under current law, the due date is June 30 of the year immediately following the calendar year being reported, and there are no extensions allowed.
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. However, taxpayers can receive an extension of up to six months. The extended due date will be October 15.
The AICPA and state CPA societies have been advocating for the new due dates included in P.L. 114-41 for several years. The idea is to create a more logical flow of information while allowing for taxpayers and tax professionals to file timely and accurate tax returns. While these due dates will not take effect for a couple of years, we feel it is important to relay this information to our clients as early as possible. Should you have any questions, please don’t hesitate to contact us.