Certain Tax Return Due Dates Changed in Highway Funding Bill — Effective Tax Year 2016
The short-term highway funding extension passed by the Senate contains several important tax provisions (H.R. 3236). The bill was passed by the House of Representatives, 385–34, on Wednesday, and the President signed the bill into law on Friday, July 31.
For partnership returns, the new due date is March 15 (for calendar-year partnerships) and the 15th day of the third month following the close of the fiscal year (for fiscal-year partnerships). (Currently, these returns are due on April 15, for calendar-year partnerships.) The act directs the IRS to allow a maximum extension of six months for Forms 1065, U.S. Return of Partnership Income.
For C corporations, the new due date is the 15th day of the fourth month following the close of the corporation’s year. (April 15th for calendar-year C Corps – insert by K Strube) (Currently, these returns are due on the 15th day of the third month following the close of the corporation’s year.)
The new due dates will apply to returns for tax years beginning after Dec. 31, 2015. However, for C corporations with fiscal years ending on June 30, the new due dates will not apply until tax years beginning after Dec. 31, 2025.
These new due dates are generally ones that the AICPA and state CPA societies have been advocating for several years to create a more logical flow of information and help taxpayers and tax professionals in filing timely and accurate tax returns. Under the current due dates, taxpayers and practitioners often have insufficient time to prepare returns because required information from a flow-through business is not available before the taxpayer’s income tax return is due.
—Alistair M. Nevius (firstname.lastname@example.org) is the JofA’s editor-in-chief, tax.
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