By Jennifer Youngblood | December 5, 2016 |
On July 31, 2015, President Obama signed into law the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, or “the bill.” While its purpose was to provide short-term funding for highway projects, it included modifications to the original bill and extended due dates of many income tax forms.
The modifications go into effect for tax years that began after December 31, 2015 (i.e., beginning with 2016 income tax returns that will be due in 2017.) The following chart outlines changes to the most commonly filed forms:
|Tax Form||Original Due Date||Extended Due Date|
|1040 – Individual Income Tax||April 15||October 15|
|1041 – Fiduciary Income Tax||April 15||September 30|
|1065 – Partnership (Calendar Year)||March 15||September 15|
|1120S – S Corporation||March 15||September 15|
|1120 – C Corporation (Calendar Year)||April 15||October 15|
|FinCEN Form 114 – Foreign Bank Accounts||April 15||October 15|
|5500 – Return of Employee Benefit Plan||July 31||November 15|
|Form 990||May 15||November 15|
It is important to note that a C Corporation with a June 30 fiscal year-end are not subject to the new filing deadlines until tax years beginning after December 31, 2025. For a calendar year C Corporation, the six-month extension is applicable through 2026. Afterward, the time extension decreases to a five-month extension.
The purpose of these changes was to alleviate the burden on tax preparers and taxpayers, who can be waiting on final tax information to complete and file their income tax returns and sometimes the final piece of information would not arrive until a day or two before a deadline. This created a backlog of tax returns to be filed by the extended deadline. These staggered deadlines give the tax preparer and taxpayer sufficient time to gather the final pieces of information, and file their tax returns with plenty of time to spare.
Maddox Thomson is always current on these frequently changing deadlines and there advise our clients on what this means for you.