The short-term highway funding extension recently passed by the Senate, the House of Representatives and President Barack Obama includes several important changes to tax return due dates.
However, it is worth noting that the new due dates apply to returns for tax years beginning after 31 December 2015. This means that individuals won’t see the benefit of these changes until early 2017.
Two of the key changes revolve around FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and alterations to the US partnership and C Corporation deadlines.
In a welcome move, the due date for the FBAR has been brought in-line with that of an individual’s US income tax return to 15 April. This can be extended by six months upon request. It remains to be seen whether the automatic two month extension for taxpayers living outside of the US will apply.
In regards to partnership returns, the deadline has been brought forward from 15 April for calendar-year partnerships to 15 March; and the fifteenth day of the third month following the close of the fiscal year for fiscal year partnerships. This move is being widely regarded as positive as it means tax information for partnerships should be available earlier. Conversely, however, this does mean that US partnerships will need to be prepared to provide tax filings one month earlier absent any extension.
For C Corporations, the deadline has been moved to the fifteenth day of the fourth month following the close of the Corporations’ year.
The changes to the above mentioned due dates have been under discussion for a number of years and are aimed at creating a more logical flow of information, and to also help taxpayers and professionals to file their returns in a more timely and accurate manner.
If you want to know more about the changes to tax return due dates – or have any questions about your finances in general – get in touch with the team at Frank Hirth.
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