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IRS Tries to Simplify Filing Dates

On Behalf of | Aug 20, 2015 | Firm News

The CPA and tax community are celebrating the recent passing of H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, because it has changed the due dates for certain tax and information returns.  Affected by the change are taxpayers filing partnership returns, S corporation returns, C corporation returns, FinCEN Report 114, (formerly known as FBARs) Form 3520, and Form 3520-A.

Under the current rules, calendar-year partnership returns are due April 15.  The new due date has been pushed up to March 15 for calendar-year partnerships and the 15th day of the third month following the close of the fiscal year for fiscal year partnerships.  The act also grants a six-month extension to file Forms 1065, US Return of Partnership Income, where there was only a five-month extension beforehand.

Similar to partnership returns, S corporation returns are now required to be filed by March 15th for those made on the basis of the calendar year; or for fiscal year S corporations, the returns are due by the 15th day of the third month following the close of the fiscal year.

C corporations currently have a due date of the 15th day of the third month following the close of the C corporation’s year; but under the new act, the due date has been pushed back to the 15th day of the fourth month.  For the C corporations with fiscal years ending June 30, these changes in due dates will not take effect until tax years beginning after December 31, 2025.

The due date of FinCEN Report 114 has been changed from the current due date of June 30 to April 15.  Currently, no extension is available to file FinCEN Report 114.  However, a maximum six-month extension is now available under the new provisions.  Also, penalties for failing to timely request, or file, an extension may be waived by the Secretary for those taxpayers who are required to file an FBAR for the first time.

Form 3520-A, Annual Information Return of a Foreign Trust with a United States Owner, and Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, are also affected by this act. Under the current rules, Form 3520-A is due by the 15th day of the third month after the end of the trust’s tax year with no extension available.  Under the new provisions, the due date remains the same; however, a six-month maximum extension is now available.  Form 3520’s due date remains the same, April 15, with an available six-month extension.

It must be mentioned that, unless otherwise noted, these changes do not take effect until tax years beginning after December 31, 2015.  For example, the FinCEN Report 114 2015 deadline remains June 30, 2016; however, the 2016 deadline will be April 15, 2017.