Tax Return Due Dates to Change In 2016

For the first time since 1986, tax return due dates for certain filers will change in 2016. The short-term highway funding extension passed by the Senate during the last week of July contains several important tax provisions (H.R. 3236). The bill was passed by the House of Representatives, 385–34, and signed by President Barack Obama on Friday, July 31.

Of special note in this piece of legislation are the modifications to due dates for partnership and corporation tax returns, as well as FinCEN Form 114 (also known as the “FBAR”).

• For partnership returns, the due date for 2016 and later will be March 15th for calendar year taxpayers, or the fifteenth day of the third month following the end of the partnership’s tax year for fiscal year or final year taxpayers.
• For corporations other than sub-chapter S corporations, the due date for 2016 and later will be April 15th for calendar year taxpayers, or the fifteenth day of the fourth month following the end of the corporation’s tax year for taxpayers on a fiscal or final year.
• The due date for FinCEN Form 114 is changed from June 30 to April 15. For the first time, taxpayers will also be allowed to request a six month extension.

Due dates for the rest of 2015 remain the same- corporation returns on extension are due September 15, and individual and partnership returns on extension are due October 15.

The earlier due date for partnership returns comes as a mixed blessing- while partnerships will have a month less time to file, taxpayers that rely on a K-1 to file their individual taxes should gain an extra month of breathing space between the due dates.

FBAR filings are becoming more important in the post FATCA era of international information sharing between taxation agencies. Preparation and submission of FinCEN Form 114 is a service that we provide (normally in conjunction with tax preparation). The earlier due date takes away some of the time previously available to ensure accuracy and compliance. However, we think that it makes sense for this form to be filed at the same time as the tax return and IRS form 8938 (which has similar requirements to the FBAR).

If you have questions about how the new due dates will affect your individual situation, please don’t hesitate to get in touch with us.