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New due dates coming for partnerships and corporations

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    New due dates coming for partnerships and corporations

    On July 31, 2015 the president signed into law H.R.3236: "Surface Transportation and Veterans Health Care Choice Improvement Act of 2015." New federal laws often contain provisions that are completely unrelated to their titles, and that is certainly true in this case. H.R.3236 contains several changes in tax laws, some of which will be relevant to most tax preparers and consultants. Sec. 2006 of the law changes tax return due dates for partnerships and C corporations and extends the automatic extension for corporate income tax returns from three to six months.

    Effective for years beginning after December 31, 2015 the due date for a C corporation's income tax return will be April 15th. (For fiscal year corporations the due date will be the 15th day of the 4th month after year-end.) This additional month should be welcome news for those who struggle to complete F-1120 within the current 2½ month time window. For partnerships the due date was shortened by one month from April 15th to March 15th. The due date for filing an S corporation's income tax return remains unchanged at March 15th.

    Although the shortened due date for partnership returns may become a hardship on some tax professionals, the earlier due date should significantly reduce the problem of taxpayers getting their partnerships K-1s at the last-minute, forcing everyone to then scramble to get the individual tax returns done before the April 15 deadline. It may also reduce the number of extensions requested by many individuals, simply because they're waiting on a K-1 form, making it easier on everyone. Partnerships will still be able to get an extension to file, of course, but I predict most will not do that and will just file by the new, unextended due date.

    These changes and the others included in H.R.3236 were probably made at the behest if the IRS, but it's also possible that many members of Congress received complaints from constituents regarding late-arriving partnership K-1s. In addition to the revised due dates the new law also made five or six other tax related changes, most of which will have little or no impact on anyone reading this post. If you wish to read about all the changes, simply do a Google or other search for H.R.3236.
    Roland Slugg
    "I do what I can."

    #2
    Thanks for the update. Pushing the 1065 back to 3/15 totally makes sense.

    Comment


      #3
      Sneaky Stuff

      You state a very common occurrence - legislation with popular-sounding titles that are a cinch to pass are often bereft of other things thrown onto the train by politicians that have nothing to do with the title. After all, who is going to vote against a bill which promises to shore up VA benefits for veterans? Everyone knows, some first hand, that the structure has turned their back on them. Very common that a bill with broad bi-partisan support, with a name like "Malnutrician Relief Act of 2015 for Children" will be loaded up with special interest legislation before the train leaves the station, and the final effect will favor wealthy cronies much more than underprivileged children.

      As far as the new dates? The overwhelming effect on us regardless of deadlines is the people who rush in at the last minute, no matter the date. I don't think these new dates are bad, but the effect of adding months to ease up on taxpayers will be no advantage of productive time and just give them longer before they bring their stuff for us. If you are like me, you have good and prompt folks, and folks that will string you out no matter what.

      Comment


        #4
        Correct

        Originally posted by Snaggletooth View Post
        You state a very common occurrence - legislation with popular-sounding titles that are a cinch to pass are often bereft of other things thrown onto the train by politicians that have nothing to do with the title. After all, who is going to vote against a bill which promises to shore up VA benefits for veterans? Everyone knows, some first hand, that the structure has turned their back on them. Very common that a bill with broad bi-partisan support, with a name like "Malnutrician Relief Act of 2015 for Children" will be loaded up with special interest legislation before the train leaves the station, and the final effect will favor wealthy cronies much more than underprivileged children.

        As far as the new dates? The overwhelming effect on us regardless of deadlines is the people who rush in at the last minute, no matter the date. I don't think these new dates are bad, but the effect of adding months to ease up on taxpayers will be no advantage of productive time and just give them longer before they bring their stuff for us. If you are like me, you have good and prompt folks, and folks that will string you out no matter what.
        Well said.
        Always cite your source for support to defend your opinion

        Comment

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