Return filing deadlines revised for corporations, partnerships, others Tax Insights

Tax Insights
from Washington National Tax Services
Return filing deadlines revised for
corporations, partnerships, others
August 12, 2015
In brief
Recently enacted legislation changes tax return filing dates for corporate, partnership, and certain other
returns filed for tax years beginning after December 31, 2015.
The filing date changes were signed into law by President Obama on July 31 as part of a short-term
highway funding measure (P.L. 114-41), extending for three months federal highway and transit program
authorization that had been set to expire on July 31. The short-term extension allows Congress more
time to continue working on a possible long-term highway bill that could include international tax reform
provisions. (For prior coverage of the short-term highway legislation, see PwC Insight, Congress
approves short-term highway bill with revenue offsets; international tax reform remains an option for
long-term bill, July 30, 2015).
In detail
The short-term highway funding
extension provides new filing
dates for certain tax returns as
one of the new law’s revenueraising provisions. The
modified due dates apply for
various tax returns, including
returns of C corporations,
partnerships, and S
corporations. As revised, the
due date (without extension) for
filing a C corporation tax return
will be three-and-a-half months
after the close of the tax year
(April 15 for calendar-year tax
years). The due date (without
extension) for filing a
partnership and S corporation
tax return will be two-and-a-half
months after the close of the
entity’s tax year (March 15 for
calendar-year tax years).
The new filing dates generally
are effective for tax returns filed
for tax years beginning after
December 31, 2015. However,
for C corporations with tax years
ending on June 30, the current
filing dates will remain in effect
until tax years beginning after
December 31, 2025; for those
taxpayers, the due date (without
extension) will remain
September 15 until after 2025.
In addition to modifying the
unextended return due dates,
the legislation also modifies
certain extension periods. Code
Section 6081(b), which now
provides an automatic three-
month extension to
corporations that file Form
7004, generally will provide a
six-month automatic extension
so long as the taxpayer files
Form 7004. However, for C
corporations with a calendar
year-end, the legislation permits
only a five-month extension for
tax years that begin before
January 1, 2026, and the
legislation permits a sevenmonth extension for C
corporations whose tax year
ends on June 30 for such tax
years that begin prior to
January 1, 2026. For tax years
beginning on or after January 1,
2026, Section 6081(b) will
provide a six-month automatic
extension for corporations,
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Tax Insights
regardless of tax year-end, so long as
the corporation files Form 7004 (or
satisfies such other requirement as
may be imposed by the IRS).
Observation: Proponents of these
changes to the return filing dates
believe the changes will permit
investors in partnerships and S
corporations to receive needed
information before the investor’s own
return due date; however, it remains
unclear whether this objective will be
accomplished considering extension
periods. If many partnerships,
especially those in tiered structures,
extend their return due dates while
they await information to complete
their own returns, the change may
leave investors in the same position as
before – either they must file returns
based on incomplete information or
must extend their own return due
date.
Other extensions
The new legislation also directs other
return due date changes or permits
new or modified extension periods.
Specifically, the legislation modifies
the due date of FinCEN Report 114,
which relates to reporting of foreign
bank accounts, from June 30 to April
15. It also provides an extension, for
the first time, for the FinCEN Report
114 for a maximum of six months.
The legislation also directs Treasury to
modify certain regulations with
respect to maximum extension
periods, including extensions for
trusts, employee benefit plans, and
tax-exempt entities.
The various return due date
provisions and return extension
modifications are estimated to raise
$314 million over 10 years.
New filing due dates for S corporations, C corporations, and partnerships
The new filing dates generally are effective for tax years beginning after December 31, 2015
Due date
Extended due date
C corporations – calendar year
April 15
5-month automatic extension (September 15)
until 2026, then 6-month
C corporations – fiscal year other
than June 30
3-½ months after year-end
6-month automatic extension
C corporations – June 30 year
September 15
(until 2026, then October 15)
7-month automatic extension (April 15) until
2026, then 6-month
Partnerships
March 15 for calendar-year returns, or
2-½ months after close of year-end
6-month maximum extension
(September 15 for calendar-year returns)
S Corporations
March 15 for calendar-year returns, or
2-½ months after close of year-end
6-month maximum extension
Trust Form 1041 – calendar year
April 15
5-½-month maximum extension
Trust Form 1041 – non-calendar
year
3-½ months after year-end
5-month maximum extension
(6-month for certain types of trusts)
FinCEN Foreign Bank Account
Reporting (FBAR)
April 15
6-month maximum extension
NOTE: The statute directs the IRS to provide by regulations that the maximum extension for a partnership return shall be
a six-month period ending September 15 for calendar-year taxpayers. The statute further directs the IRS to provide by
regulations other varying maximum extension periods for tax returns filed by tax-exempt organizations, employee benefit
plans, and for certain other returns.
NOTE: For short-period returns covering periods beginning after December 31, 2015, the modified filing dates would
apply for such returns filed beginning in 2016.
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The takeaway
The changes created by the legislation affect taxpayers differently depending on the type of entity and when its tax year
ends. Indeed, for any taxpayer with a short tax year beginning after December 31, 2015, these changes may have a more
immediate impact. As a result, taxpayers will want to review their return-filing procedures and determine what changes
might be necessary to take the new filing dates into account.
Let’s talk
For a deeper discussion of how this might affect your business, please contact:
US Tax Controversy and Regulatory Services
Ruth Perez
(202) 346-5181
[email protected]
Linda Stiff
(202) 312-7587
[email protected]
Corina Trainer
(202) 414-1328
[email protected]
Elizabeth Tucker
(214) 754-7696
[email protected]
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