Tax Return Due Date Changes on the Horizon
Author: Travis Truesdell
The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 sets new tax return and form due dates effective for taxable years starting after December 31, 2015. The new law, which generally applies to 2016 calendar year-end tax returns prepared during the 2017 tax filing season, sets due dates based on whether taxation occurs at the business level (C corporations) or the owner level (S corporations and partnerships).
Under the new law, calendar year-end partnership income tax returns will be due March 15 (or 2½ months after year-end). Historically, calendar year-end partnerships had to file by April 15—the same date as individual income tax returns. As a result, the owner of a partnership interest often didn’t obtain the Schedule K-1 to prepare tax returns in a timely manner. The new due date changes address this issue by making calendar year-end, pass-through returns due March 15. As S corps also pass income through to their owners, the new law will retain the March 15 due date.
C corps generally pay tax at the entity level and don’t pass income through to owners. Calendar year-end, C corp income tax returns historically were due March 15; the new law pushes this back to April 15 (or 3½ months after year-end). However, the extended due date for calendar year-end C corps will continue to be September 15 until the 2025 tax year. After 2025, the extended due date will be October 15. Note: C corps with a June 30 fiscal year-end will continue to have a September 15 due date with the new law but may request an automatic April 15 extension until the 2025 tax year. After 2025, June 30 fiscal year-end C corps will have an October 15 due date and can request extensions until April 15.
Many other tax return types and forms will experience changes to their original and/or extended due dates, including foreign bank reporting forms. FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), is now due April 15 with an extended October 15 due date.
Here are the new federal due dates generally applicable for 2016 calendar year-end tax returns: