The Act recently signed by Obama revises return due dates and changes the automatic extension periods for some returns.The due date for Form 1065, U.S. Return of Partnership Income, will be the 15th day of the third month following the close ot the partnership’s tax year. The change will be applicable to returns for tax years beginning after December 31, 2015. Previously, partnership returns were due the 15th day of the fourth month (April 15 for calendar-year taxpayers). The new law also codifies the existing 15th-day-of-the-third-month due date for Form 1120S, U.S. Income Tax Return for an S Corporation, so that both Form 1065 and Form 1120S will have the same due date (March 15 for calendar-year entities).
The change in the due date for partnership returns to March 15 will enable partners who are individuals to receive their Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc., in time to report the information on their Form 1040, U.S. Individual Income Tax Return (like individuals who are S corporation shareholders). Without this change, many individuals who are partners are forced to file a six-month extension to file their Form 1040, U.S. Individual Income Tax Return.
The Act directs the IRS to provide for a maximum six-month extension (previously five months) for partnerships filing Form 1065 (ending on September 15 for calendar-year taxpayers). The new law applies to returns for tax years beginning after December 31, 2015.
If you have any questions regarding these new provisions, you should direct them to your ATA representative.
Seek the services of a legal or tax adviser before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt PLLC, call (214) 871.7500 or email email@example.com.