November 2016 ALERT: Important 2016 Tax Return Due Date Changes

Important 2016 Tax Return Due Date Changes

You may have heard the news by now that President Obama had signed in 2015, H.R. 3236 – Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, which contained several common tax returns’ due date changes that will be in effect for the 2016 tax year.  This may have been an unlikely bill to enact the changes listed below, but they have been advocated by the AICPA and state CPA societies for many years to reflect the logical flow of information from pass-through entities to the ultimate taxpayer (individual, trust or C corporation).  With these due date modifications, the hope from the IRS is that there will be less extensions due to the fact that taxpayers will be supplied with information in a more timely manner now.  The following lists the most common tax return filings from what the due dates were before and after the modification.

Initial Due Dates

 

Old Due Date

 

New Due Date

Partnership

April 15

March 15

S Corporation

March 15

No Change

C Corporation

March 15

April 15

Individual

April 15

No Change

Trust

April 15

No Change

FBAR (Foreign Bank Account Reporting)

 

June 30

 

April 15

Extended Due Dates

 

Old Due Date

 

New Due Date

Partnership

September 15

No Change

S Corporation

September 15

No Change

C Corporation

September 15

October 15

Individual

October 15

No Change

Trust

September 15

September 30

FBAR (Foreign Bank Account Reporting)

 

None

 

October 15

Governor Brown of California has already signed AB 1775, which generally conforms due dates for California business entity tax returns to the changes mentioned above.  It is unknown at this time if California will modify the due dates or the $800 fee assessed to partnerships from April 15th to March 15th.  We will communicate this information as soon as we hear of any changes.  Also, other states are expected to conform to the new federal due dates, if they have not already done so.  Since the new due dates are effective next year and will likely impact most taxpayers, we suggest that you take the time before the end of this year to consult with your tax advisor on the best strategy to meet your business needs.

For more information regarding the impact of the new due dates, please contact our office at (949) 260-1430.

Katie Gerrells, Tax Manager

SKINNER FOUCH & OLSON LLP