New Business Tax Return Due Dates Take Effect In 2016

Posted by: Brookside Admin

Over the summer, a bill was introduced and passed in the House, passed by the Senate and received the President's signature all in the span of three days. The bill is referred to as the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 and its primary purpose was to grant a short-term extension of mass transit and highway funding. What does Transportation and Veterans' Health Care have to do with one another? Probably very little, but the real puzzler is how this bill came to also include significant changes to tax return due dates . However it happened, these new due dates affect all sorts of businesses, partnerships and other organizations and go into effect in 2016, which means the first of these new due dates will occur in 2017. Here's what you need to know. 

  • S Corporations, Partnerships and C Corporations

Let's start with S Corporations and Partnerships. If your business falls within these categories, your new due date for tax returns is March 15th if you operate on the calendar year, or the 15th day of the third month after you close your fiscal year. This is a full month earlier than the current deadline in place. For C Corporations, the due date actually moves a full month later in the year. It moves from the current due date of March 15th to April 15th for those on the calendar year, or to the 15th day of the fourth month after the close of your fiscal year. In both cases, a 6-month extension option is available. One odd exception is for C Corporations with fiscal years ending on June 30th. For these organizations, due dates don't change for ten years. 

  • Foreign Trust Reporting

For those that use Form 3520-A, Annual Information Return of a Foreign Trust with a United States Owner, there's also a new due date to mark on your calendars. Because trusts can have flexible year end's, the due date now falls on the 15th day of the third month after the close of the trust's tax year. Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, now has a due date of April 15th for calendar year filings. The most significant change in due dates exists for the FinCEN Report 114, which replaces the FBAR Return, relating to Report of Foreign Bank and Financial Accounts. Previously, these weren't due until June 30th, but the new due date has moved all the way up to April 15th. 

  • Extensions

As previously mentioned, there are extension options available with these new due dates, but the time allowable varies and may have changed from previous years. Here are the new extension lengths along with their due dates for some specific returns: 

-Form 1065: 6-month extension ending on September 15th for calendar year taxpayers

-Form 1041: 5 1/2-month extension ending on September 30th for calendar year taxpayers

-Form 5500: 3 1/2-month extension ending November 15th for calendar year taxpayers

-Form 990: 6-month extension ending November 15th for calendar year taxpayers

-Form 4720,  5227, 6069, 8870, 3520, 3520-A: 6-month extension beginning from original due date

-FinCEN Report 114: 6-month extension ending on October 15th. The first time there's every been an extension available. 

If you're unsure of the due dates or what form your business needs to use to file, contact us at Brown Kinion CPAs. We offer tax and accounting help to business in Tulsa, Bixby, Broken Arrow and throughout northeast Oklahoma.