Nothing is certain in life except life and taxes. However, even taxes are a little more uncertain with recent changes to due dates. Our Las Vegas accounting firm works hard at staying up-to-date so we can bring you the most current information. While taxpayers will still be required to oblige by the April 15 individual income tax return due date, there are some noticeable changes implemented by Congress beginning in 2016.
Although the changes came about from a non-tax law, H.R. 3236 the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, they represent the new rules that businesses and individuals must follow. Much to the chagrin of taxpayers, the law also provided the IRS with an increased audit period for six years in many cases.
Due Date Changes
Some of the notable tax due date changes include:
- Tax returns for partnerships under § 6012 and § 6037 are due a month sooner than usual on March 15. If the accounting period for the partnership is not based on a calendar year, taxpayers must file their return no later than the 15th of the third month after the end of the business’ tax year.
- C corporation tax returns are due on April 15th. If the business uses a non-calendar year, the return is due on the 15th of the fourth month following the end of the corporation’s tax year. If a C corporation has a June 30 fiscal year-end, it will still continue to have a due date of September 15 until 2025. After this point, the due date will change to October 15th.
- FBARs will be due on April 15 instead of June 30 for individuals who had foreign accounts in excess of $10,000 during any point in the tax year.
The changes are set to remain in effect until 2025. After this point, the rules regarding the 15th of the month for non-calendar year reporting periods will change to October 15.
Another important change to the tax laws are the rules regarding tax extensions. For S corporations and partnerships, the maximum extension is September 15 for calendar year businesses. For returns from C corporations with a calendar taxable year starting in 2016, the maximum extension will be five months instead of six months. C corporations that have a taxable year that ends on June 30 will have an extension period of seven months.
Returns for trusts filing Form 1041 can have an extension of up to 5 ½ months, ending on September 30 if the taxpayer is a calendar-year payer. This is less time than allowed under current law, which provides for an extension period up to October 15.
Foreign bank account owners have a maximum extension period of six months ending on October 15 for returns filed in 2016 for their FinCEN Report 114. Additionally, the taxpayer can ask to waive the penalty associated with failing to file on the due date, for first time filing only.
If you have any questions regarding the change in due dates or extension periods and how they may affect your individual or business tax return, please contact the Las Vegas accounting firm, Fair, Anderson & Langerman at (702) 870-7999.