AICPA supports H.R. 901 and S. 420 and is working to get the legislation enacted.
An AICPA Tax Division task force was formed to explore a legislative solution to the problem of the late receipt of Schedules K-1.
The task force reviewed the results of May 2008/May 2009 member surveys on this topic and various options for legislative change to include: 1) the possibility of 7-month statutory extensions; and 2) the use of staggered due dates for all taxpayers involved in the Schedule K-1 process. In 2009, the task force and other Tax Division members held discussions with Hill staff, IRS, the National Taxpayer Advocate’s Office, Treasury and others concerning the dilemma of the late receipt of Schedules K-1 by taxpayers and CPAs who prepare the Form 1040, 1041, 1065, 1120 and 1120S tax returns which include such K-1 information.
A position was approved for submission to Congress that would require the filing of Form 1065 on March 15, Form 1120S on March 31, and Forms 1040, 1041 and 1120 on April 15. Extended due dates would be 6 months later for all these forms except Form 1041, which would be extended 5.5 months to September 30. This would alleviate the problems mentioned above by establishing a logical set of due dates focused on promoting a chronologically-correct flow of information between passthrough entities and their owners. It would promote the early filing of more business and personal returns and relieve some of the workload compression surrounding the September 15 business return deadline.
On May 17, 2013, AICPA submitted written testimony in support of the due dates provision in the House Ways and Means Committee small business tax reform discussion draft. On January 16, 2014, the AICPA submitted comments on the due dates proposal in the Senate Finance Committee discussion draft.