New Due Dates For Filing Common Tax Returns And Other Recent Tax Compliance Changes


by Austin Bradley

Bradley, Austin

abradley@mcgrathnorth.com
(402) 341-3070

On July 31, 2015, President Obama signed into law the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015”. This new law revises the due dates for filing some common tax forms and includes other important tax-related provisions. Business owners should also be aware that the IRS recently issued temporary regulations affecting filing extensions for W-2 wage statements. The following information provides a brief overview of these changes.

Tax Filing Changes.

For tax years beginning after December 31, 2015, the new law modifies the due date for the following tax filings:

  • Partnership and S Corporation Returns. Currently, S corporations must file their returns by the 15th day of the third month after the end of the corporation’s tax year (i.e., March 15 for calendar-year corporations). Partnerships must currently file their returns by the 15th day of the fourth month after the end of the partnership’s tax year (i.e., April 15 for calendar-year partnerships). For taxable years beginning after December 31, 2015, partnerships and S corporations must file their tax returns by the 15th day of the third month after the end of the tax year (i.e., March 15 for calendar-year partnerships and S corporations). In other words, the filing deadline for partnerships will be accelerated by one month; the filing deadline for S corporations will stay the same.
  • C Corporation Returns. Currently, C corporations must file their returns by the 15th day of the third month after the end of the corporation’s tax year (i.e., March 15 for calendar-year C corporations). For taxable years beginning after December 31, 2015, C corporations must file their returns by the 15th day of the fourth month after the end of the corporation’s tax year. Thus, the filing deadline for C corporations will be delayed by one month. Note that there is a limited exception, applicable only to C corporations with fiscal years ending on June 30, which provides that the delayed filing deadline for such C corporations won’t apply until tax years beginning after December 31, 2025.
  • FBAR Filings. Taxpayers with a financial interest in or signature authority over certain foreign financial accounts are required to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts), also known as the “FBAR.” Currently, the FBAR must be filed by June 30 of the year immediately following the calendar year being reported. No filing extensions are currently permitted. For taxable years beginning after December 31, 2015, the FBAR must be filed by April 15 of the year immediately following the calendar year being reported. A maximum six-month extension will be allowed. In addition, for any taxpayer required to file the FBAR for the first time, any penalty imposed for the failure to timely request (or file) an extension may be waived by the IRS.

New Filing Extensions for Various Returns.

Effective for tax years beginning after December 31, 2015, the new law also allows a longer extension period to file the following tax forms:

  • Form 1065 (U.S. Return of Partnership Income) will have a maximum extension of six months (currently, a five-month extension applies).
  • Form 1041 (U.S. Income Tax Return for Estates and Trusts) will have a maximum extension of five and a half months (currently, a five-month extension applies).
  • Form 5500 (Annual Return/Report of Employee Benefit Plan) will have a maximum automatic extension of three and a half months (currently, a two-and-a-half-month extension applies).
  • Form 990 (Return of Organization Exempt From Income Tax) will have a maximum automatic extension of six months (currently, a three-month extension applies).

Consistent Basis Reporting for Inherited Property.

The new law also requires that the income tax basis for any property acquired from a decedent be consistent with the final value of the property reported on the decedent’s federal estate tax return.

Under the new requirements, executors of estates that are required to file an estate tax return must now furnish a statement to the IRS and to each person acquiring any interest in property included in the decedent’s gross estate for federal estate tax purposes. The statement must identify the value of each interest in the property as reported on the federal estate tax return, and must be provided no later than the earlier of 30 days after the estate tax return is required to be filed (including extensions) or 30 days after filing the return.

These new statements are required for all federal estate tax returns filed after July 31, 2015; however, the IRS recently released Notice 2015-57, which delays the due date for furnishing such statements until February 29, 2016

Filing Extensions for W-2s.

The IRS recently issued temporary regulations that limit the extensions available for filing Form W-2 (Wage and Tax Statement). The temporary regulations remove a provision allowing an automatic 30-day extension and another non-automatic 30-day extension, replacing them with a single non-automatic 30-day extension. The IRS has indicated that it will grant the single non-automatic extension “only in limited cases” where the extension is needed as a result of extraordinary circumstances or catastrophe. This change affects all forms in the W-2 series, other than Form W-2G (Certain Gambling Winnings), filed beginning in 2017.

If you want additional information about how these changes may affect you, or your clients, please contact a member of the McGrath North Tax Group.

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