If you are required to file partnership tax returns, C corporation tax returns, or foreign information reporting (FinCen 114/FBAR), the Surface Transportation Act of 2015 ("the Highway Act") brings some actionable news regarding revised filing deadlines effective for 2016 tax returns. The current partnership return deadline imposes a problem for many partners to timely file their returns by April 15. The partnership due date change may give more time for partners to include any Schedule(s) K-1 income and/or loss on their personal income tax returns and file by April 15.
Under the current filing rules, most calendar year partnership tax returns are due on April 15. Generally for 2016 tax year returns, the Highway Act accelerates the due date to March 15 for filing partnership tax returns and issuing Schedules K-1 to partners (the same due date as S corporations).
Calendar year C corporations will get a little break with a change in filing date from March 15 to April 15. This new filing date will coincide with the first quarter estimated tax payment due date for the next tax year. C corporations that currently make tax return or extension payments on March 15 and 1st quarter estimated tax payments on April 15 will need to plan their cash flow needs to make both payments in April beginning in 2017. One interesting note in the new law: the filing date for a C corporation with a June 30 year end does not change until the year 2026.
Until the Highway Act was passed, the annual foreign bank account reporting (FBAR) on Form FinCEN 114 was required to be completed on one specific date - June 30. Now, the due date for Form FinCEN 114 will be synchronized with the due date for filing individual income tax returns - both will be due April 15. In addition, for the first time, taxpayers will be able to request an extension of time to file their Form FinCEN 114 and file by as late as October 15.
By Andy Moceri, CPA
If you have any questions, contact your local UHY LLP professional, or visit us on the web at www.uhy-us.com