Tax Return Changes are Just Around the Corner

You probably just filed your tax return and have been looking forward to thinking about anything other than taxes for a few months. While that’s understandable, be aware that several important deadline changes have been made for some types of tax returns.

The changes result from the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, which — despite its name — includes provisions related to some tax return due dates and mortgage reporting requirements. And many changes apply to tax years starting after December 31, 2015.

C corporations

C corporations with calendar year ends face a deadline shift from March 15 to April 15. Similarly, the tax return due dates for corporations with tax years that end on dates other than June 30 (and other than December 31) will now be the 15th day of the fourth month after the end of their tax years. Corporations with a June 30 year end will continue to file taxes by September 15, until December 31, 2025. After this date, their filing deadline shifts to October 15.

This change recognizes that most C corporations don’t receive audited financial statements until about three months after they close out their years. With the new deadline, they stand a better chance of being able to prepare their returns without automatically requiring an extension.

C corporations with calendar year ends will be allowed five-month extensions until 2026, while companies with June 30 year ends will be allowed seven-month extensions, also until 2026. Corporations with other year ends can receive six-month extensions. Starting with the 2026 returns, all extensions can be six months.

Partnerships

Partnerships with calendar year ends must file Form 1065, “U.S. Return of Partnership Income,” along with Schedule K-1, “Partner’s Share of Income,” by March 15. This is a shift from the previous due date of April 15. The new date should allow partners to use the information contained in these forms to file their personal returns, which typically are due a month later.

Partnerships with year ends other than December 31 must file these forms by the 15th day of the third month after the close of their fiscal year ends. Partnerships can ask for extensions of up to six months.

S corporations

The S corporation deadline remains the same, thankfully! For those with calendar year ends, Form 1120S, “U.S. Income Tax Return for an S Corporation,” and Schedule K-1, “Shareholder’s Share of Income,” are due on March 15. Similarly, the due dates for these forms for S corporations with other than calendar year ends remain the 15th day of the third month after fiscal year end. And S corporations are still able to request six-month extensions.

FBAR

FinCEN Form 114, “Report of Foreign Bank and Financial Accounts” (also known as “FBAR”), will be due April 15, rather than June 30, starting with the 2016 tax year. This way, it aligns with the deadlines for individual income tax returns. FBAR filers will be able to request extensions of up to six months. For taxpayers filing FBARs for the first time, any penalty for failing to request or file for an extension in a timely manner may be waived.

Mortgages

The law also changes some mortgage reporting requirements. Starting in 2017, lenders must provide the following additional information on Form 1098, “Mortgage Interest Statement”: the date of the mortgage origination, the outstanding principal at the beginning of the year, and the address of the property securing the mortgage.

Help with the changes

If you have questions about the new tax return deadlines, contact your tax advisor. He or she will be able to help you understand all of these changes.