Deadline Changes for 2016 Tax Returns
The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (the Act), was passed which established new due dates for Partnership and Corporation tax returns, FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and several other IRS information returns.
Revised Due Dates:
Partnerships – For calendar-year partnerships, the filing date is accelerated to March 15. For all others, the filing date is the 15th day of the third month after the end of the tax year.
C-Corporations – For calendar-year corporations, the filing date is delayed to April 15. For all others, the filing date is the 15th day of the fourth month after the end of the tax year.
FinCEN Form 114 (FBAR) – The filing date is accelerated to April 15.
The new due dates are effective for tax years beginning after December 31, 2015, except for C-Corporations with a fiscal year end of June 30, which will be effective for tax years beginning after December 31, 2025.
Revised Extension Periods:
The Act also provides new extension periods which will become effective for tax years beginning after December 31, 2015.
Partnerships – The extension period will be a 6-month maximum extension in order to maintain the existing September 15 extended filing deadline for partnerships with a calendar year-end.
C-Corporations (calendar year-end) – The extension period will be reduced to a 5-month extension in order to maintain the existing September 15 extended filing deadline for corporations with a calendar year-end. This will change to October 15 for tax years beginning after December 31, 2025.
C Corporations (June 30 year-end) – These entities will receive an automatic 7-month extension period which will coincide with the April 15 revised filing deadline for calendar year-end corporations, effective for tax years beginning after December 31, 2015.
FinCEN Form 114 (FBAR) – Taxpayers can request a maximum 6-month extension ending on October 15. Prior to this, taxpayers could not extend the filing of this form. It is unclear at this time whether or not this extension will be automatic.
**UPDATE** Change in Extended Due Date for Calendar Year C-Corporations
The IRS issued a statement on February 7, explaining that calendar-year C-corporations are eligible for an automatic 6-month extension of time to file their income tax returns. This will change the extended due date to October 15. Although Internal Revenue Code 6081(b) provides a 5-month automatic extension period for calendar-year C-corporations, the IRS is granting a 6-month automatic extension under section 6081(a) instead. This change is reflected in the new revision of the Form 7004 Instructions.
Authors: Matt Gravelin, Tax Principal & Megan Goodell, Senior Tax Associate