Tax Return Due Dates Changed

Obama Signs Highway Bill Revising Return Due Dates, Making Other Compliance Change

President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 ( P.L. 114-41) on July 31. The Act revises some return due dates, overrules the Supreme Court’s decision in Home Concrete, 2012-1 ustc ¶50,315, revises the employer shared responsibility requirements in the Affordable Care Act (ACA), and includes other tax compliance measures. Although the highway and transportation funding portion of the Act is temporary, the tax compliance measures are permanent.

These changes are generally effective for taxable years starting after Dec. 31, 2015 (2016 tax returns prepared during the 2017 tax filing season).

Return due dates

The Act provides that the due date for partnerships to file Form 1065, U.S. Return of Partnership Income and Schedule K-1s, Partner's Share of Income, will move from April 15 to March 15 (or to the 2 ½ months after the close of its tax year for fiscal-year taxpayers). Under the Act, the filing deadline for regular C corporations moves from March 15 (or the 15th day of the 3rd month after the end of its tax year) to April 15 (or the 15th day of the 4th month after the end of its tax year).

COMMENT 

For C corporations with tax years ending on June 30, the filing deadline will remain at September 15 until tax years beginning after December 31, 2025, when it will become October 15. An automatic six-month extension will be available for C corporations, except for calendar-year C corporations through 2025, during which an automatic five-month extension until September 15 will generally apply.

FBAR

The Act shifts the due date for the FBAR (Report of Foreign Bank and Financial Accounts, FinCEN Form 114) from June 30 to April 15 with a maximum extension of a six-month period ending October 15.

Exempt organizations. Under the Act, the maximum extension for the returns of exempt organizations filing Form 990 (series) is an automatic six-month period ending on November 15 for calendar year filers. The maximum extension for returns of exempt organizations required to file Form 4720 is an automatic six-month period beginning on the due date for filing the return (without regard to any extensions).

COMMENT

 
The automatic six-month extension for exempt organizations makes the filing process more efficient.

More returns

Among other changes, the Act directs the IRS to modify its regs to allow a maximum extension of 3 ½ months on Form 5500, Annual Return/Report of Employee Benefit Plan; and 5 ½ months on Form 1041, U.S. Tax Return for Estates and Trusts.