“Tax Due Dates Change – A Logical Decision” by Steve Mazza, CPA | Manger – Tax
Each and every year a large number of individual income tax returns sit on a CPA’s desk in March 90% finished. Finally, sometime in the first two weeks of April the last piece of information comes in and the scramble to file on time starts.
What is this last piece of information? A partnership K-1.
Until this year, both calendar year partnerships (Form 1065) and individual income tax returns (Form 1040) were due on the exact same date; April 15th. Meanwhile, a calendar year C-corporation return, which does not affect individual income tax returns, was due on March 15th. Logically, one would think since partnership income flows to an individual and is reported on each partner’s income tax return, that the partnership tax returns would be due earlier than individual income tax returns. For years the American Institute of Certified Public Accountants and many other accounting societies have pushed for tax due dates to change.
As part of the highway funding bill passed in summer of 2015, the tax due dates of calendar year Partnership returns and calendar year C-corporation returns have switched. Partnership returns are now due by March 15th and C-corporations are due by April 15th. Perhaps now with the improved work flow more of those individual income tax returns can go out sooner rather than sitting idle waiting on partnership K-1’s.
The Partnership and C-corporation due date switch is perhaps the largest change, but there are many more forms affected. Other forms include FINCEN Form 114 (foreign bank account reporting), Form 1041 (trusts), Form 990 (non-profits), and a number of other forms. There are also some differing rules for non-calendar year returns, meaning those with year ends other than December 31st.