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Changes to 2016 Tax Filing Deadlines

In 2015, a bill was passed that changed tax filing deadlines for certain IRS forms that will impact a lot of filers. Not only is it important to know the changes so you can prepare and file your return timely but to understand why the changes were made.

In 2015, a bill was passed that changed tax filing deadlines for certain IRS forms that will impact a lot of filers.  Not only is it important to know the changes so you can prepare and file your return timely but to understand why the changes were made.

Summary of Changes

IRS Form Business Type Previous Deadline New Deadline

1065 Partnership April 15 March 15

1120C Corporation March 15 April 15

NOTE:  The dates in the chart above are for companies with years ending 12/31.  If a company has a different fiscal year, Partnerships will now file by the 15th day of the third month following year end and C Corporations will now file by the 15th day of the fourth month following year end.

Why the Changes?

The most practical reason for the change to filing deadlines is that individuals with partnership interests will now have a better opportunity to file their individual returns (Form 1040) without extending.  Form K-1 provides information related to the activity of a Partnership at the level of each individual partner.  For example, if I own 50% of a Partnership, my K-1 would show 50% of the income (or loss) generated, certain deductions, and any other activity needed for me to file my Form 1040.  The issue with the previous Partnership return deadline of April 15th is that it coincided with the individual deadline.  This resulted in partners of the company not receiving their K-1’s with sufficient time to file their personal return by April 15th.   With Partnerships now having a deadline of March 15th, this will give individuals a month to receive their K-1 and file their personal return without having to extend.

The deadline for Form 1120, which is filed by C Corporations, was also changed with this bill.  Where the Form 1065 deadline was cut back by a month, the Form 1120 was extended a month.  C Corporations, for tax purposes, are treated similar to individuals whereas they pay taxes directly when they file their return.  Partnerships are not taxed directly, rather the income or loss is passed through to each individual partner who recognizes the tax ramifications on their personal return.  For this reason, the deadline for Form 1120 being extended a month has little impact, if any, on individuals.  The change gives C Corporations more time to file without having to extend the return.

S Corporations are another common business type.  The deadlines for S Corporation returns (Form 1120S) were not changed with this bill.  S Corporations are similar to Partnerships in that K-1’s are distributed to owners and the income or loss generated is passed through to the individuals return.  That being said, Form 1120S already has a due date of March 15th, the same as the new Partnership deadline.

Extension Deadlines

IRS Form Business Type Deadline

1040 Individual October 15

1065 Partnership September 15

1120 C Corporation September 15

1120S S Corporation September 15

Extension deadlines were not immediately changed with the passing of the bill.  Although Partnerships previously had the same filing deadline as individuals, the deadline with the filing of an extension was a month before.  This was necessary because if a Partnership did not have to file an extended return until October 15th, individuals with partnership interests wouldn’t have a choice but to file delinquent.

The one change to the extension chart above set to take place in 2026 is the C Corporation extension being changed to October 15th.

Summary

Overall, the changes appear to have improved the filing calendar.  This may be a big adjustment for Partnerships that are used to the April 15th deadline as they will have one less month to get organized and file.  For this reason, you may see an increase in 2016 Partnership extensions.

About Rob……...

Hi, I’m Rob Mangold. I’m the Chief Operating Officer at Greenbush Financial Group and a contributor to the Money Smart Board blog. We created the blog to provide strategies that will help our readers personally , professionally, and financially. Our blog is meant to be a resource. If there are questions that you need answered, pleas feel free to join in on the discussion or contact me directly.

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Big Changes For 401(k) Hardship Distributions

While it probably seems odd that there is a connection between the government passing a budget and your 401(k) plan, this year there was. On February 9, 2018, the Bipartisan Budget Act of 2018 was passed into law which ended the government shutdown by raising the debt ceiling for the next two years. However, also buried in the new law were

403(b) Lawsuits Continue To Spread To More Colleges
403(b) Lawsuits Continue To Spread To More Colleges

In the last 3 years, the number of lawsuits filed against colleges for excessive fees and compliance issues related to their 403(b) plans has increased exponentially. Here is a list of just some of the colleges that have had lawsuit brought against them by their 403(b) plan participants:

How Does A Simple IRA Plan Work?
How Does A Simple IRA Plan Work?

Not every company with employees should have a 401(k) plan. In many cases, a Simple IRA plan may be the best fit for a small business. These plans carry the following benefits

How Does A SEP IRA Work?
How Does A SEP IRA Work?

SEP stands for “Simplified Employee Pension”. The SEP IRA is one of the most common employer sponsored retirement plans used by sole proprietors and small businesses.

How Do Single(k) Plans Work?
How Do Single(k) Plans Work?

A Single(k) plan is an employer sponsored retirement plan for owner only entities, meaning you have no full-time employees. These owner only entities get the benefits of having a full fledge 401(k) plan without the large administrative costs associated with traditional 401(k) plans.

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