The federal tax deadlines will change beginning with the 2016 tax year. These changes may impact when you get your tax information and may even impact when your tax return is filed. On July 31, 2015, President Obama signed into law legislation that modifies the tax deadlines for corporations, partnerships, trusts, and other returns. Below is a summary of the new federal tax deadlines.
The big change is that partnership returns are now due March 15th and calendar year-end C Corporation returns are now due April 15th. The extended due date for C Corporations, S Corporations, and Partnerships remains September 15th. The extended due date for trust and estate tax returns will change to September 30th.
Another change to highlight is Form 990 will no longer require a second extension to November 15th. Form 114, Report of Foreign Bank and Financial Accounts, will now be due by April 15th or October 15th with an extension.
There was additional legislation signed by President Obama in December 2015. The legislation repealed the extended due date change for Employee Benefit Plans from November 15th back to October 15th. The legislation changed the due date for Form W-3 and Form 1096 for 1099-MISC, which are now due by January 31st (the same date they are due to the taxpayer). This is one of the changes the IRS is making in hopes of limiting fraudulent tax returns and identity theft.
The new deadlines provide for a more logical flow of information. These changes were made to allow extra time between the receipt of a Schedule K-1 and the filing of the partner, shareholder, or beneficiary’s tax return. Historically, a Schedule K-1 may be received within days of the due dates and taxpayers only had those couple days to complete their tax returns. The additional time should allow taxpayers and practitioners to file a more complete and accurate tax return.
Many states are also expected to follow these new federal deadlines.