Partnership, Trust and Estate Tax Returns Can Be Extended For Only Five Months Rather than Six Months

Target Audience: Business Owners, Financial Managers, Accounting Consulting Firm Advisement Interest, MA State Tax System Interest, Partnerships, Trust and Estate Owners, Tax Return Updates Interest, Tax Extensions Interest

In order to help individuals better meet their filing obligations, the IRS has announced that it has issued Regulations that will change the extended due dates for certain businesses to file their returns required to be filed before January 1, 2009. The IRS has changed the date that income, deductions and credits from partnerships, estates and trusts are reported to partners, investors and beneficiaries, on Schedules K-1 and other similar statements, which individuals need in order to complete their own tax returns. Currently, the extended due date for both businesses and individuals often falls on the same date, generally October 15, which creates a burden for individual taxpayers who rely on the information to file their personal tax returns in a timely manner.

These Regulations will reduce the extension time for filing Form 1065: U.S. Return of Partnership Income, Form 1041: U.S. Income Tax Return for Estates and Trusts; and Form 8804: Annual Return for Partnership Withholding Tax, from six months to five months, so that the individual recipients are afforded time to prepare and file their returns within the extended time frames. The IRS stated that the proposed changes would be effective for extension requests with respect to tax returns due on or after January 1, 2009; this also applies to business entities filing those returns and forms with a tax year ending on or after September 30, 2008.

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