NEW HIGHWAY ACT CHANGES FILING DEADLINES FOR CERTAIN BUSINESS TAX RETURNS

Kelly Lopez, CPA

President Obama signed into law the “Surface Transportation and Veterans Health Care Choice Improvement Act at the end of July. The Act implements due date changes for business tax returns beginning with 2016 tax returns.

Currently, partnership tax returns are due April 15 (or 3 ½ months after year-end). Under the new rules partnerships will be required to file by March 15 (or 2 ½ months after the close of its tax year). This is the same due date already in place for S Corporations. A six-month extension will be available. The new deadline will apply to returns to taxable years beginning after December 31, 2015.

The new regulations also change the filing deadline for C Corporations from March 15 (or the 15th day of the third month following the close of the corporation’s year) to April 15 (or the 15th day of the fourth month after year-end). The new due date will apply to returns with taxable years beginning after December 31, 2015, however, for C corporations with a tax year ending on June 30, the change will be effective beginning after December 31, 2025.

Automatic extension periods have also been adjusted. C Corporations that do not have a calendar year will have an automatic six-month extension of the applicable filing date. For calendar year C Corporations the automatic extension will be five months (September 15) until tax years beginning after December 31, 2025. At that point, calendar year C corporations will also get the automatic six-month extension, which will give them until October 15 to file.

The act also changes the due date of FinCEN Report 114 (former FBAR return) which is used to disclose foreign bank and financial information. Currently, this form is due on June 30, and there is no extension allowed. The new regulation moves the deadline back to April 15. The good news is that there will be a six-month extension available, which will give taxpayers until October 15th to file.

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