Upcoming Business Income Tax Return Due Date Change

On July 31, 2015, President Obama signed the highway funding bill into law.  While it sounds like this law would not have any effect on you, it may potentially impact you.  We have now learned that buried into the bill there was a provision to change certain tax return due dates.  Most of the new due dates will begin with 2016 tax returns in the 2017 filing season.  The following chart summarizes the original due dates, and the new due dates per the bill.

Return Type	Current Initial and Extended Due Date	New Initial and Extended Due Date
Partnership – Form 1065 (Calendar Year)	April 15 September 15	March 15 September 15
Trust and Estate – Form 1041	April 15 September 15	April 15 September 30
C Corporation – Form 1120 (Calendar Year)	March 15 September 15	Before 12/31/2025 April 15 September 15	After 12/31/2025 April 15 October 15
C Corporation – Form 1120 (6/30 Fiscal Year)	September 15 March 15		After 12/31/2025 October 15 April 15

 

C-corporations have an interesting provision.  Through December 31, 2025, if the C-corporation is on a calendar year, then the initial due date will be April 15 and extended due date will be September 15.  After December 31, 2025, the initial due date remains April 15, but the extended due date changes to October 15.  If the C-corporation has a June 30 year-end, the new due dates will not go into effect until after December 31, 2025, with the initial due date being October 15 and the extended due date being April 15.  Once we get to 2026, all C-corporations will have an initial due date of the 15^th day of the fourth month following the close of the corporation’s year end.  Also, once we get to 2026, all C-corporations will be allowed a six-month extension.

Partnership returns on a fiscal year end will have an initial due date of the 15^th day of the third month following the close of the fiscal year.  The partnership return will be allowed a six month extension from the initial due date.   As reflected in the above table, calendar year partnerships will have an initial due date of March 15 and extended due date of September 15, once the law goes into effect.

Exempt organizations that file Form 990 will receive a single, automatic 6-month extension once the law goes into effect.  The initial due date for a 990 is the 15^th day of the fifth month following the year-end.

S-corporations due dates did not change – the initial due date is March 15, and the extended due date remains September 15.  Once the law takes effect, partnership and S-corporations due dates will align.  One positive outcome of the change is that partnership K-1’s will initially be due one month before the personal return.  This will give tax return preparers some breathing room to receive K-1’s for personal returns, and potentially get the personal return filed before April 15.  Of course, some returns will still have to be extended, but I am looking forward to having initial partnership return due dates one month before the personal return due date.