FF&F News & Events


New Bill Brings New Tax Return Due Dates

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On July 31, 2015, President Obama signed into law the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.  The primary focus of the Act is to increase short term funding for mass transit and highway infrastructure.  As a way of paying for these capital expenditures, Congress adjusted the due dates and extended due dates of many common income tax returns.  With these expenses in mind, it made perfect sense that Congress would also take the opportunity to change the landscape of tax return due dates, tax extension lengths, as well as a certain statute of limitation.

DESCRIPTION

PRIOR DUE DATE

NEW DUE DATE

PRIOR EXTENSION DUE DATE

NEW EXTENSION DUE DATE

Calendar Year Partnerships (Form 1065)

April 15

March 15

September 15

September 15

Fiscal Year Partnerships (Form 1065)

15th day of the fourth month following the close of the fiscal year

15th day of the third month following the close of the fiscal year

5 month extension

6 month extension

Calendar Year S Corporations (Form 1120S)

March 15

March 15

September 15

September 15

Fiscal Year S Corporations (Form 1120S)

15th day of the third month following the close of the fiscal year

15th day of the third month following the close of the fiscal year

6 month extension

6 month extension

Calendar Year C Corporations (Form 1120)

March 15

April 15

September 15

October 15

Fiscal Year (other than June 30 year end) C Corporations (Form 1120)

15th day of the third month following the close of the fiscal year

15th day of the fourth month following the close of the fiscal year

6 month extension

6 month extension

Fiscal Year C Corporations (June 30 year end)*

 15th day of the third month following the close of the fiscal year

15th day of the third month following the close of the fiscal year

6 month extension

7 month extension

Calendar Year Trusts (Form 1041)

April 15

April 15

September 15

September 30

Calendar Year Plans (Form 5500)

July 31

July 31

October 15

November 15

Calendar Year Exempt Organizations (Form 990 series)

May 15

May 15

3 month extension, additional 3 month extension upon request

6 month extension

Form 4720, 5227, 6069, 8870, 3520-A, 3520

Various

Various

Various

6 month extension

FinCEN Report 114

June 30

April 15

No extension

6 month extension

Changes apply to tax years beginning after December 31, 2015 (*with one exception: C corporations with fiscal years ending on June 30 will be impacted for tax years beginning after December 31, 2025)

HOW WILL THE CHANGES AFFECT FF&F AND OUR CLIENTS?
Richard Oremus and Andy Yan, two partners of the firm who work extensively with closely held businesses, have provided their insight as to how these due date changes will affect our clients.  Although Rich believes these changes make sense in theory, practically speaking, he does not expect any major changes to our practice.  With regards to partnership tax returns, most partnership returns that were extended before will simply be put on extension a month earlier, and with the same extended due date (September 15th) as under prior law, no changes will follow suit.  Andy is concerned that changing the due date of calendar year C-corporation returns to April 15th will cause clients to procrastinate longer and effectively compress tax season as practitioners will essentially be trying to file both C-corporation and individual income tax returns by the April 15th due date.  Both Rich and Andy agree that FF&F must be vigilant in pushing our clients for information earlier than the new due dates require in order to avoid a major time crunch during the peak of our busy seasons.  This change will require advanced planning to make sure our clients’ demands are met on a timely basis.

As always, it will be FF&F’s goal to adequately communicate these changes to our clients and make sure that our clients will be fully prepared for the changes ahead! For more information on this topic, please contact us at info@fffcpas.com.

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Samuel Kang, CPA, MST has 7 years of experience in public accounting as a tax practitioner with expertise in high net worth individuals, closely held businesses, trusts, partnerships, and S-corporations.