Changes in Tax Return and FBAR Due Dates and Extensions

The deadline for filing tax returns and Foreign Bank Account Report (FinCEN Form 114) (FBAR) has been changed by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Below is a brief summary of the changes of which taxpayers and tax-preparers should be aware.

FBAR

Under the new law, the due date for filing a FBAR is April 15th. In addition, an extension of up to six months may be requested. Currently, the deadline for filing a FBAR is June 30th, and no extension is permitted.

In addition, under the new law, with respect to a taxpayer who resides overseas, a two-month extension is automatically granted for an FBAR filing, with an additional four-month extension available. Furthermore, with respect to any taxpayer who files an FBAR for the first time, the IRS may waive the penalty for failure to timely request an extension.

The new law applies with respect to the 2016 FBAR to be filed on April 15, 2017 (or October 15, 2017 with a six-month extension). Therefore, with respect to the 2015 FBAR, the filing deadline remains as June 30, 2016, and no extension is permitted.

Partnership and S Corporation

Under the new law, the due date for filing tax returns of calendar year partnerships and Subchapter S corporations is the 15th day of March following the close of the calendar year. With respect to fiscal year partnerships and S corporations, the deadline for filing their tax returns is on or before the 15th day of the third month following the close of the fiscal year. The new due date is one month earlier than the previous due date of April 15th for a calendar year partnership or S corporation.

The new return due date applies to returns for taxable years beginning after December 31, 2015.

C Corporation

Under the new law, the due date for filing tax returns of C corporations is the fifteenth day of the fourth calendar month that begins after the close of the corporation’s fiscal year. For a calendar year corporation, the tax return due date will be April 15th. The new due date is one month later than the previous due date of March 15th for a calendar year C corporation.

The new return due date applies to returns for taxable years beginning after December 31, 2015. However, with respect to a C corporation with a taxable year ending on June 30th, the new return due date applies to returns for taxable years beginning after December 31, 2025.