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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