United States

IRS issues updated return due dates and extended due dates

INSIGHT ARTICLE  | 

The IRS recently issued final and temporary regulations (TD 9821) effective July 20, 2017, which update the due dates and extensions of time to file certain tax returns and information returns. The due dates and extensions are updated to reflect new statutory requirements set by section 2006 of the Surface Transposition and Veterans Health Care Choice Act of 2015 (Surface Transportation Act) and section 201 of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).

These regulations affect taxpayers who file the following forms:

  • Form W-2 (series, except Form W-2G)
  • Form W-3
  • Form 990 (series)
  • Form 1099-MISC
  • Form 1041 and Form 1041-A
  • Form 1065, Form 1120 (series)
  • Form 4720
  • Form 5227
  • Form 6069
  • Form 8804
  • Form 8870

Form 1120 (series) and Form 1065

The temporary regulations amend Reg. section 1.6072-2 to change the due date for filing Form 1120 (series) from the 15th day of the third month following the close of the taxable year (March 15 for calendar year taxpayers) to the 15th day of the fourth month following the close of the taxable year (April 15 for calendar year taxpayers). The amendments also change the due date for filing Form 1065 from the 15th day of the fourth month following the close of the taxable year (April 15 for calendar year taxpayers) to the 15th day of the third month following the close of the taxable year (March 15 for calendar year taxpayers).

Generally, these amendments apply to returns for taxable years beginning after Dec. 31, 2015. However, these amendments apply to returns for taxable years beginning after Dec. 31, 2025 for any C corporation with a taxable year ending on June 30.

Section 2006(c) of the Surface Transposition Act changes the automatic extension of time to file Form 1120 (series) from three months to six months. However, there are exceptions for C corporations with taxable years that begin before Jan 1, 2026. These statutory exceptions are (1) if a C corporation files for a calendar year, the automatic extension is five months; and (2) if the C corporation files for a taxable year that end on June 30, the automatic extension is seven months. These amendments apply to income tax returns for taxable years beginning after Dec. 31, 2015.

Form W-2 series, Form W-3 and Form 1099-MISC

Section 201(a) and (c) of the PATH Act amended section 6171(b) and added new section 6071(c) to change the due date for information returns in the Form W-2 series, Form W-3, and nonemployee compensation reported in box 7 of Form 1099-MISC. Under section 6071(c), the new due date for returns in the Form W-2 series, Form W-3 and Form 1099-MISC that report nonemployee compensation is Jan. 31 for the calendar year following the calendar year the information is being reported, regardless of whether the returns are filed on paper or electronically. The due date for information returns on Forms 1099-MISC that do not report nonemployee compensation (if amounts are reported in box 8 or 14) remains unchanged and is February 15. These amendments are effective for information returns for calendar years beginning after 2015.

Form 1041

To implement section 2006(b)(2) of the Surface Transportation Act and provide consistency for automatic extensions for non-bankruptcy estates and trusts filing Form 1041, Reg. section 1.6081-6T(a)(1) provides both non-bankruptcy estates and trusts with an automatic five and one-half months (ending September 30) extension of time to file Form 1041, provided that the estate or trust timely submits application for an extension of time to file the Form 1041.  The new regulations do not amend Reg. section 1.6081-6(a)(2), which addresses bankruptcy estates filing Form 1041.

Takeaways

Ensuring proper compliance with IRS filing rules can become overly burdensome, particularly when modifications to the rules seem routine. Taking into consideration the consequences for failure to follow IRS compliance rules, taxpayers who are required to prepare and file the tax returns and information returns addressed herein should discuss these updates with their tax advisor.

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