Friday, August 7, 2015

New Law Revises Due Dates for Corporation and Partnership Returns

The recently enacted Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (the “Act”) made significant changes in the deadlines for filing many corporate and partnership tax returns. These changes will be effective for returns filed for taxable years beginning after December 31, 2015.

Partnerships will have to file their U.S. partnership returns (IRS Form 1065) two months and 15 days after the close of its taxable year as opposed to the existing rule of three months and 15 days. Thus, for example, a calendar year partnership’s tax return will be due on March 15 whereas previously it was due April 15. The Act also increases the automatic extension period for partnership returns from 5 to 6 months. Thus, the extended due date for calendar-year partnerships will continue to be September 15.

Most C corporations will have to file their U.S. corporation returns (IRS Form 1120) three months and 15 days after the close of its taxable year as opposed to the existing rule of two months and 15 days. Thus, for example, a calendar year corporation’s tax return will be due on April 15 whereas previously it was due March 15. The Act also provides for an automatic 5-month extension for most C corporations. Thus, the extended due date for calendar-year corporations will continue to be September 15. The extension period will be increased to 6 months for returns for tax years beginning on or after January 1, 2026. The filing deadline for S corporation returns remains unchanged.

These changes only apply to the filing dates for federal returns. Filing dates for state corporate and partnership income tax returns will remain the same unless the states act individually to change their own deadlines.