Due Dates For Filing FBAR, Corporation And Partnership Returns Changed From 2016

The filling due dates for certain filings to be done in 2017 onwards for tax years beginning after December 31, 2015 have been changed. Strangely the changes have come from in an unexpected way with the President signing H.R.3236 – Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 on July 31, 2015 – into law.

FBAR FORM 114 – The due date of FBAR – FinCEN Report Form 114 (Report of Foreign Bank and Financial Accounts) shall be April 15, to coincide with the due date for filing 1040 Individual Income Tax returns. For the first time, taxpayers would also be able to file for an extension – for period up to 6-month till October 15.  As a relief for first time innocent omission to file, in the case of any taxpayer required to file such Form for the first time, any penalty for failure to timely request for, or file, an extension, may be waived by the Secretary.

PARTNERSHIP RETURNS (Form 1065) – The due date for Partnerships would be March 15 instead of April 15 as in the case of S Corporations, with a six months extension till September 15th. However, for Partnership filers who prepare returns on the basis of a fiscal year basis will be required to be file on or before the 15th day of the third month (instead of fourth month) following the close of the fiscal year, with an option six month extension.

C CORPORATION RETURNS (Form 1120) – The due date for C Corporations is also being changed to April 15 instead of March 15, with a 5 months extension till September 15. However, filers who prepare returns on the basis of a fiscal year basis will be required to be file on or before the 15th day of the fourth month (instead of third month) following the close of the fiscal year, with an option for five month extension until 2026. However, corporations which have a June 30 year end would get a seven-month extension until 2026.

OTHER RETURNS – The extension periods for filing Forms 1041, 5500, 990, 4720, 5227, 6069, 8870, 3520-A, 3520 have also been revised.

Other Significant Changes

Additional information on Form 1098 relating to mortgage interest

Mortgage information statements that are required to be sent to individuals who pay more than $600 in mortgage interest in a year will now be required to include the outstanding principal on the mortgage at the beginning of the calendar year, date of origination of the mortgage and the address of the property that secures the mortgage. These changes apply to returns and statements due after Dec. 31, 2016.

Inherited assets – Consistency in basis reporting between estate and beneficiaries

H.R.3236 also provides that anyone inheriting property from a decedent cannot treat the property as having a higher basis than the basis reported by the estate for estate tax purposes. It also creates a new Sec. 6035, which requires executors of estates that are required to file an estate tax return to furnish information returns to the IRS as well as the beneficiaries statements which will identify the value of each interest in property acquired from the estate as reported on the estate tax return. These amendments shall apply to property with respect to which an estate tax return is filed after the date of the enactment of this Act.

Here is the link to the H.R. 3236 –

https://www.congress.gov/bill/114th-congress/house-bill/3236/text#toc-HCFC1B5C758A944DE807AC0FC688A702A

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About Us Bhatia & Co, Inc, Certified Public Accountants is a diversified Full service financial and business services firm concentrating on providingservices to domestic and international organizations, with special focus on international transactions and tax planning. Our Team of highly skilled and diversified range of finance and business professionals provide services in areas of business and individual tax,audit & review, international tax planning, incorporation and corporatecompliance, accounting, outsourcing, business consulting, financial and retirement planning, immigration consulting and litigation support to adiverse range of clients.. We are located in the prestigious Techmart building in the heart of Silicon Valley in Santa Clara,CA for the last 13+ years and have offices in New Delhi for 30+ years. . Our current engagements include cross border tax planning and transactions, corporate structuring, and complex Tax audits and representation including recent oversees disclosure programs (OVDP/OVDI). Our organization is headed by Neeraj Bhatia, who is an accomplished accounting professional with 30+ years expertise in international and domestic tax planning and compliance for startups and multinational entities. Neeraj is a licensed CPA in California, New York and Colorado and a CA in India. He also has a LL.M. in International Taxation from the US, Costs and Works (Management) Accountancy, and a Bachelor (Honors) degree in Commerce from India. During his academic years he has received several awards and scholarships for being the top ranker nationally.

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