Special Bulletin - August 2015
|CONGRESS CHANGES MANY TAX RETURN DUE DATES & EXTENSIONS|
The American Institute of CPAs has been working to change certain tax return due dates, reducing the need for related extensions. On July 29th, Congress passed a bill that included these provisions. The new due dates apply to taxable years beginning after December 31, 2015, which generally means 2016 (the returns you will file in 2017) for most taxpayers. Use this chart
as a handy reference to keep track of what is changing and when.
The purpose of the bill, referred to as the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015
, was to grant additional infrastructure spending. Congress took advantage of the opportunity to change many tax return due dates, tax extension lengths and statutes of limitations.
The new law changes a number of due dates for tax returns. These include:
- Partnerships and S corporations: The new due date is March 15 for calendar year partnerships and LLCs taxed as partnerships, and the 15th day of the third month after the close of the fiscal year for fiscal year partnerships. Note that this is a month earlier than the previous due date of April 15. With respect to C corporation returns, the new due date is the 15th day of the fourth month following the close of the corporation's year (that would be April 15 for a calendar year end corporation). Note that this is a month later than the previous due date of March 15 for calendar year end corporations. In both cases (partnership returns and corporate returns), the new law allows for a six month extension with exceptions for certain corporations through 2026. All of these changes apply to returns for tax years beginning after December 31, 2015 with one exception: C corporations with fiscal years ending on June 30 have ten extra years (yes, ten) to make the change.
- Foreign trust reporting: The due date of Form 3520-A, Annual Information Return of a Foreign Trust with a United States Owner, has been changed to the 15th day of the third month after the close of the trust's tax year (remember that trusts can have flexible tax years). The due date of Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, for calendar year filers has been changed to April 15.
- Report of Foreign Bank and Financial Accounts (previously FBAR): The new law changes the due date for the FinCEN Report 114 relating to Report of Foreign Bank and Financial Accounts (replacing the old "FBAR return") to April 15. Remember that the due date used to be June 30 so this is significantly earlier. Fortunately, there's now an extension available.
Read this article
for further details. If you have any questions, please contact our office.
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