In the summer of 2015 the Congress passed legislation, subsequently signed by President Barak Obama, that modified tax return filing due dates, starting in tax year 2016 (2017 tax filing season).
WHY THE CHANGES ARE IMPORTANT:
Prior to the new legislation, partnership and LLC (Form 1065) tax returns were due by April 15th, at the same time as individual tax returns. This circumstance complicated tax return filing for individuals who are partners in a partnership or members in an LLC. Schedule K-1s (partner’s/shareholder’s share of income, deductions, credits, etc.) were not always available to individuals at the time needed to prepare their personal tax returns.
With the new legislation, partnership and LLC tax returns (Form 1065) will be due by March 15, along with S-corporation tax returns (Form 1120S).
The new due dates will allow for earlier access to the K-1s, which will encourage a more efficient processing of tax returns and ideally reduce the need for extensions.
Summary of business tax return deadline changes:
- Partnerships (Form 1065) — The due date is moved from April 15 to March 15 or the 15th day of the third month after the year-end.
- S Corporation (Form 1120S) — No change, due dates remain March 15, allowing for preparation of Schedule K-1s as they relate to individuals and organizations.
- C Corporations (Form 1120) — Due date moved from March 15 to April 15; in most cases, returns will be due on the 15th of the fourth month after the year-end.
Both Partnership (1065) and S Corporation tax returns can be extended for six months, due by September 15. Calendar year C Corporation tax returns, however, can be extended only for five months, due by September 15 (until tax year 2026).
Individual tax return filing deadlines remain unchanged with the exception of Foreign Bank and Financial Accounts Report (FBAR), due by Aril 15 instead of June 30, with the new legislation.
While adjusting to these new deadlines may be overwhelming, they generally will benefit the taxpayers by making Schedule K-1s available earlier for individual tax return preparation. If you need help understanding how the new deadlines affect your business tax filing or have questions regarding any forms not mentioned in this article, please do not hesitate to contact us for a free consultation.