On July 31 Preseident Obama signed the short-term mass transit and highway funding extension bill into law, which continues to provide funding for transportation projects.
Additionally, Congress included in the bill a number of changes to tax return due dates, tax extension lengths and statutes of limitations. The new deadlines apply to taxable years beginning after December 31, 2015. For most taxpayers this means the 2016 taxes which will be filed in 2017.
The new due date for partnerships with tax years ending on December 31 to file federal income tax returns is March 15. This is a month earlier than the previous April 15th due date.
For partnerships with fiscal year ends, tax returns are due the 15th day of the third month after the close of the tax year. This is a month later than the previous due date.
Partnerships can file a maximum extension of six months (until September 15) up from the previous five-month extension.
C corporation returns are now due 15th day of the fourth month after the close of the corporation’s tax year. Previously, returns were due on the 15th day of the third month after close (a month earlier).
C corporations can file a six month extension (up from three months) through 2026, exceptions apply. C corporations with fiscal years ending June 30 have ten years to make the change.
Foreign Trust Reporting
The due date of filing a foreign trust with a United States owner, has been changed to the 15th day of the third month after the close of the trust’s tax year (trusts can have flexible tax years).
The due date of Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, for calendar year filers has been changed to April 15.
The new law changes the due date for the FinCEN Report 114 relating to Report of Foreign Bank and Financial Accounts (replacing the old “FBAR return”) to April 15. The due date used to be June 30 so this is significantly earlier. Fortunately, there’s now an extension available. [Forbes]
The mass transit and highway funding extension bill implements not only changes tax return dates and extensions, but also makes amendments to mortgage reporting requirements, estate and property reporting, statue of limitations and more.
Read about the bill here.
To review and prepare for all these changes, contact Millan and Co CPA’s and schedule a consultation. Email: firstname.lastname@example.org or phone: 512-479-6819.