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Sept. 15 deadline looms for corporations and partnerships with filing extensions

IR 2015-107

In a News Release, IRS has reminded calendar year corporations and partnerships that took extensions to file their income tax returns by the September 15 deadline.

Background on filing deadline for corporations. For tax years that begin before Jan. 1, 2016, domestic corporations (including S corporations) must file their income tax returns by the 15th day of the 3rd month after the end of the tax year (Mar. 15 for a calendar year corporation). (Code Sec. 6072(a), Reg. § 1.6037-1(b)) A corporation can get an automatic 6-month extension by filing Form 7004 (Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns) that shows its estimated tax liability by the original due date. (Reg. § 1.6081-3)

Effective generally for returns for tax years beginning after Dec. 31, 2015, C corporations will have to file by the 15th day of the 4th month after the end of the tax year. Thus, those with a calendar year will have to file by Apr. 15 of the following year. (Code Sec. 6072(b), as amended by Surface Transportation Act Sec. 2006(a)) However, under a special rule, for C corporations with fiscal years ending on June 30, the change won’t apply until tax years beginning after Dec. 31, 2025. (Surface Transportation Act Sec. 2006(a)(3)) As before, S corporations will have to file their returns by the 15th day of the 3rd month after the end of the tax year; thus, those with a calendar year will have to file by Mar. 15 of the following year.(Code Sec. 6072(b), as amended by Surface Transportation Act Sec. 2006(a))

RIA observation: Thus, the filing deadline for C corporations will be deferred for one month; the filing deadline for S corporations stays the same.

Effective generally for returns for tax years beginning after Dec. 31, 2015, the 3-month automatic extension of time in Code Sec. 6081(b) is changed to an automatic 6-month extension. For any return for a tax year of a C corporation which ends on December 31 and begins before Jan. 1, 2026, the automatic extension period is 5 months (not 6 months). For any return for a tax year of a C corporation which ends on June 30 and begins before Jan. 1, 2026, the automatic extension period is 7 months (not 6 months). (Code Sec. 6081(b), as amended by Surface Transportation Act Sec. 2006(c)(1))

Background on filing deadline for partnerships. For tax years that begin before Jan. 1, 2016, partnerships must file their returns by the 15th day of the 4th month after the end of the partnership’s tax year (Apr. 15 for a calendar year partnership). (Code Sec. 6072(a)) A partnership can get an automatic 5-month extension of time by filing Form 7004.(Reg. § 1.6081-2)

Effective generally for returns for tax years beginning after Dec. 31, 2015, partnerships will have to file their returns by the 15th day of the 3rd month after the end of the tax year.Thus, those with a calendar year will have to file by Mar. 15 of the following year. (Code Sec. 6072(b), as amended by Surface Transportation Act Sec. 2006(a)) Effective for returns for tax years beginning after Dec. 31, 2015, Surface Transportation Act Sec. 2006(b) directs IRS to modify its regs to provide that the maximum extension for the returns of partnerships filing Form 1065 will be a 6-month period ending on Sept. 15 for calendar year taxpayers (currently a 5-month period).

RIA observation: Thus, the filing deadline for partnerships will be accelerated by one month.

Reminder. IRS reminds calendar year corporations and partnerships that took extensions of time to file their 2014 income tax returns that they must file their returns by Sept. 15.

IRS noted that it continues to see strong growth in corporations and partnerships e-filing.As of Aug. 30, 2015, more than 6 million corporations and partnerships have electronically filed their returns, representing a nearly 8% overall increase from last year. IRS also noted that most large corporations and partnerships are already required to e-file. Corporations with $10 million or more in total assets are generally required to e-file Forms 1120 and 1120S. Partnerships with more than 100 partners as defined by their Schedules K-1 filings are also generally required to e-file their returns.

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