Last week I read an article in Forbes Magazine online discussing how the passage of a highway bill has changed tax return due dates for many forms, and I wanted to share excerpts of this info with you as it will affect many in upcoming years. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 was passed to grant additional infrastructure spending through October 2015.
Following are some of the changes:
- Mortgage Reporting Requirements: Forms 1098 filed to report mortgage interest will now be required to list the amount of the outstanding principal on the mortgage at the beginning of the calendar year, the date the mortgage originated, and the address of the property securing the mortgage. These changes will show up in 2017: the due date applies to statements furnished after December 31, 2016.
- Tax Return Due Dates
- The new due date for partnership and S corporation tax returns is March 15 for those filing on a calendar year and the 15th day of the third month after the close of the fiscal year for fiscal year filings. Note that this is a month earlier than the previous due date of April 15.
- The new due date for C corporation returns is the 15th day of the fourth month following the close of the corporation’s year (April 15 for a calendar year end corporation). Note that this is a month later than the previous due date of March 15 for calendar year end corporations.
- In both cases (partnership and corporate returns), the new law allows for a six month extension with exceptions for certain corporations through 2026.
- All of these changes apply to returns for tax years beginning after December 31, 2015 with one exception: C corporations with fiscal years ending on June 30 have ten extra years to make the change.
- The new law modifies the time allowable for extension of time to file for several returns. For form 1065: 6-month period ending on September 15 for calendar year taxpayers. For form 1041: 5½-month period ending on September 30 for calendar year taxpayers. For form 5500: automatic 3½-month period ending on November 15 for calendar year plans. For form 990 (series): automatic 6-month period ending on November 15 for calendar year filers.
- The new due dates apply to taxable years beginning after December 31, 2015. That means that they’ll apply, generally, to 2016 (the returns you’ll file in 2017) for most taxpayers.
If you would like to read the full article, it can be found here. For answers to questions about how this will apply to you, contact your tax preparer.
