AICPA Works to Rationalize Tax Return Due Dates 

    Published June 30, 2011

    The delivery of K-1 Schedules close to tax return filing deadlines makes it nearly impossible for taxpayers and their tax advisers to prepare and file timely, accurate returns. 

    Schedule K-1 information is a component of millions of tax returns of individuals, S and C corporations, trusts, estates, partnerships and other entities.  Taxpayers and their CPAs need the information included in the Schedules K-1, which are issued by partnerships, S corporations, some trusts and estates, so that the owners and beneficiaries can file personal and business tax returns.  However, the information returns often arrive just days before either the original or extended return due date. 

    The AICPA’s efforts on Capitol Hill regarding the problem have resulted in the introduction in the U.S. Senate of S. 845, the Tax Return Due Date Simplification and Modernization Act of 2011, by Wyoming Republican Mike Enzi.  In the House of Representatives, Kansas Republican Lynn Jenkins introduced a similar bill, H.R. 2382, on June 24.

    The legislation would change current due dates for some returns so the information from the K-1 Schedule would flow in a chronologically-correct way from partnerships, S corporations and trusts to their owners and beneficiaries.  Specific due dates for various forms under the two bills are outlined in the chart below.  The legislation is intended to promote the early filing of more business and personal returns.

    “We understand that practitioners heavily involved in partnership return preparation may find the need to extend more returns than under current law depending on the types of investments held by the partnership,” Marc Hyman, technical manager on the AICPA Tax Team, said.  “We encourage thoughtful dialogue on this point in light of the overall benefits to the tax system as a whole, and further encourage practitioners filing partnership returns to file as soon as all necessary information is received and to not allow clients to wait the entire six month automatic extension period.  Practice management in this area will be crucial to maximize the potential new benefits of these restructured deadlines.  Optimal practice management will forestall or prevent the need to implement shorter automatic extension periods for partnership returns, such as by limiting such periods to three or four months.”

    Return Type Form S 845
    Initial Due
    Date
    S 845 
    Extended Due Date
    HR 2382 
    Initial Due
    Date
    HR 2382 
    Extended Due Date
     

    Partnership

     1065

     March 15

     September 15

     March 15

     September 15

    S Corporation

     1120S

     March 31

     September 30

     March 31

     September 30

    Trust and Estate

     1041

     April 15

     September 30

     April 15

     September 30

    C Corporation

     1120 Series

     April 15

     October 15

     April 15

    Last business day of September for 10 years, 10/15 thereafter

    Individual

     1040

     April 15

     October 15

     April 15

     October 15

    Employee Benefit Plan                          

     5500

     July 31

     November 15

     July 31

     November 15

    Foreign Bank Account Reporting                 

    Form TD F 90.22-1 

     April 15

     October 15

     April 15

     October 15




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