You may have heard on the news that the recently enacted highway bill provides short-term funding for road improvements. What you may not know is that the bill also contains provisions that impact the tax calendar for certain entities. Signed into law on July 31, this new highway funding bill alters tax return filing deadlines, beginning with 2016, for partnerships, C corporations and individuals who have reportable bank accounts in foreign countries.
What you need to know
The following revised due dates become applicable for tax years beginning after December 31, 2015.
- Partnerships: For calendar-year partnerships and LLCs that file as partnerships the filing deadline has moved one month earlier, from 4/15 to 3/15. However, the extended filing deadline remains unchanged at 9/15. For fiscal-year partnerships, the deadline is the 15th day of the third month following the close of the fiscal year, and an extension of six months can be obtained.
- C corporations: For calendar-year C corporations, the filing deadline is postponed from 3/15 to 4/15. However, the extended deadline remains 9/15. For 6/30 year-end C corporations no deadline changes apply until 2026, so the original due date remains 9/15 and the extended due date remains 3/15. For C corporations with a year-end other than 12/31 or 6/30, the original due date is the 15th day of the 4th month after year-end, and a six month extension is provided.
- S corporations: No filing deadline changes have been made. For calendar year S corporations, the original due date is 3/15, and the extended due date remains 9/15.
- Individuals with foreign bank accounts: Currently foreign bank account reporting must be completed by 6/30 and no extension is available. Starting with 2016 reports, the foreign bank reporting will be due on 4/15 and a new six month extension will be allowed until 10/15.
Have questions about how these new tax rules will impact you? Contact your RKL tax advisor for assistance.
Contributed by Eric R. Wenger, CPA, MST, a partner in RKL’s Tax Services Group and Tax Department Head in the Lancaster Office. Eric specializes in providing strategic tax planning and business advisory services to closely-held businesses and publicly-traded corporations. Eric leads the firm’s tax outsourcing niche and deals with issues surrounding consolidated tax returns, multi-state taxation, and accounting for income taxes.