New Tax Return Due Dates

Score a victory for taxpayers! After years of advocating for change, Congress has finally passed legislation that modifies the deadlines of several common tax returns.  The new tax return due dates will go into effect in the 2017 Tax Filing Season (Tax year 2016).

The new tax return dates have been a long time coming for taxpayers who have struggled to file accurate returns in a timely manner. Their tax advisors would often miss deadlines when forms (such as Schedules K-1 shown above) would arrive behind schedule. The illogical flow of information not only impacted the punctuality but also the accuracy of returns. Tax advisors would often resort to using estimates because information from a flow-through business was not available before the taxpayer’s income tax return was due.

With these modified dates, it is expected that owners of partnerships will be able to file their tax returns without requesting an extension. Below is a summary of the changes.

Calendar Year Businesses

For tax years that begin after December 31, 2015, returns of calendar year

  • C corporations will be due April 15 rather than March 15.
  • Partnerships will be due March 15 rather than April 15
  • S corporations will continue to be due March 15

Fiscal Year Businesses

  • Most C corporation returns are due on the fifteenth day of the fourth month following the end of their fiscal year
  • S corporations and partnership due on the fifteenth day of the third month
  • Exceptions for C Corps with a fiscal year ending on June 30 – changes are delayed until the first taxable year beginning after December 31, 2025

The new law also modifies the time allowed for extension of time to file for the following returns.

Calendar Year Taxpayers

  • Form 1065: Six-month period ending on September 15
  • Form 1041: Five-and-a half-month period ending on September 30
  • Form 5500: Automatic three-and-a-half-month period ending on November 15

The new filing and extension dates will improve the flow of information for both advisors and clients.

If you have questions regarding the new tax return due dates, please contact one of our tax professionals.