CPA-Endorsed Tax Due Modifications are Signed into Law
On July 31, President Obama signed into law a bill that included language changing the due date modifications for several common tax returns, including partnerships and C corporations, as well as FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and several other IRS information returns.
The prior due dates did not allow taxpayers and practitioners enough time to prepare returns because required information from a flow-through business was not available before the taxpayer’s income tax return was due. The concept behind the changes is to have flow-through returns completed prior to the returns in which the flow-through information is reported for the recipients.
The AICPA and state CPA societies have been advocating for a number of years to create a more logical flow of information that would help taxpayers and tax professionals in filing timely and accurate tax returns.
The permanent due date changes are effective in 2016 for the 2017 tax filing season and were passed by Congress on July 30 as part of a temporary Highway Trust Fund funding bill, H.R. 3236, which became P.L. 114-41. A chart delineating the due date changes is available here.
Read about other tax changes made by the law in the July 30 Journal of Accountancy story, including requirements for additional reporting on mortgage interest statements and consistent reporting between estates and beneficiaries.