In 2015, the President Obama signed the “Surface Transportation and Veterans Health Care Choice Improvement Act”. Given the title it may be surprising that a bill primarily dealing with highway infrastructure funding has a large impact on tax returns; particularly business returns.
The new law changes deadlines for some businesses and it starts with 2016 tax returns filed in 2017.
In particular, for tax years beginning after December 31, 2015, the new law accelerates the original due date for Form 1065 for partnerships (and limited liability companies taxed as partnerships) to March 15 for calendar year-end partnerships (the previous due date was April 15).
Under these new provisions both Form 1065 and Schedule K-1s for partnerships will be due on March 15. This new due date is meant to help individuals receive their Schedule K-1s (with all the necessary information from their partnerships, e.g. Partner’s Share of Income, Deductions, Credits, etc., to report on their personal tax returns) and file Form 1040 by the April 17, 2017 deadline, so that fewer extensions will be necessary.
Anyway, also the allowed extension period for Form 1065 has increased from five months to six months, meaning that the extended due date for Form 1065 has not changed. Hence, the extended due date for calendar year-end partnerships continues to be September 15.
This post is also available in: Italian