On Feb. 28, 2013, H.R. 901 and S. 420, Tax Return Due Date Simplification and Modernization Act of 2013, were introduced in the 113th Congress by Rep. Lynn Jenkins (R-KS), and Senators Mike Enzi (R-WY) and Jon Tester (D-MT). The AICPA suggested and supports the bill as it would alleviate the problems for taxpayers and their return preparers associated with the untimely receipt of Schedules K-1. Taxpayers and preparers have long struggled with problems created when Schedules K-1 arrive late, sometimes within days of (before or after) the extended due date of many returns and up to a month after the extended due date of business returns. This inefficient timeline makes it difficult, if not impossible, to file a timely, accurate tax return.
The bill would establish a logical set of due dates focused on promoting a chronologically-correct flow of information between pass-through entities and their owners and beneficiaries, encourage the early filing of more business and individual returns, relieve workload compression surrounding the September 15 tax return deadline, better enable K-1 recipients to submit timely, accurate returns, and reduce the need for extended and amended returns.
As drafted, the proposed original tax return due dates would change, as follows:
- Form 1065 would be due on March 15
- Form 1120S would be due on March 31
- Forms 1040, 1041 and 1120 would be due on April 15
- Foreign Trusts with a U.S. Owner Form 3520-A and FBAR Form TD F 90-22.1 would be due April 15
Extended dues dates for most returns would also change, as follows:
- Forms 1065, 1120S, 1120 and 1040 would still retain a 6 month extension,
- Form 1041 would be extended 5.5 months to September 30,
- Form TD F 90-22.1 and Form 3520-A would be extended 6 months to Oct. 15 (and for the TD F90-22.1, the Secretary of Treasury could waive penalties for first time failure to file an FBAR extension request),
- Exempt Organizations Forms 990 (series), 4720, 5227, and 8870 would be allowed a six month extension to November 15,
- Employee Benefit Plans Form 5500 would be allowed a 3.5 months extension to Nov. 15,
- Form 3520 would be allowed to be extended separately from the owner’s tax return.
If enacted this year, possibly as part of a comprehensive tax reform bill, the bill would revise the due dates, effective for years starting after 2013, so would be effective for 2014 tax years and the 2015 filing season. The AICPA will continue to work with Congress on getting this bill enacted.