Nov 26, 2012

Tax Season Resources, Proposed Due Dates for Certain Returns

By Mike Colgan, PICPA Executive Director and CEO

Tax season is right around the corner. It is expected to be a rough ride for many who provide tax planning and preparation services. Kyle’s blues rendition may ease the pain with a bit of humor, but the PICPA has new resources to help our members weather the storm. 

The uncertainty of the fiscal cliff makes tax planning very difficult, and a lack of civility and compromise in Washington, D.C., does not provide much hope for a quick resolution to these federal tax issues, despite post-election dialogue among the parties. On the state level, Pennsylvania practitioners need to be aware of new 1099 reporting requirements as well as changes brought about with the implementation of Act 32, among other changes. PICPA’s State Taxation Committee met with the Pennsylvania Department of Revenue to provide guidance on updates to 1099 FAQs. These are available online to help resolve members’ questions.

The PICPA has many resources available to assist practitioners, from our many tax prep CPE sessions throughout December to new online resources. In fact, we recently introduced a new breaking news section on the right-hand side of our website’s Taxation page. Also, watch next week for the release of our newest tax resource, CCH Tax Aware, a free tax news aggregate service for members.

New Due Dates Proposed

AICPA advocacy efforts in Washington have resulted in the introduction of legislation in both the House and Senate that would alter due dates for certain tax returns. This proposed legislation has the support of the Treasury Department, and the PICPA sent letters and met with our Washington delegation to garner their support.

The delivery of Schedules K-1 — issued by partnerships, S corporations, some trusts and estates — so close to the tax return filing deadlines makes it nearly impossible for the recipients and their CPAs to prepare and file timely, accurate returns. Additionally, regulatory changes that now result in many partnership and trust K-1s to be filed around Sept. 15 creates a problem for business entities waiting on last minute K-1s, compressing the filing calendar significantly around that date

The proposed legislation would change current due dates for some returns so the information from the Schedule K-1 would flow in a chronologically correct way from partnerships, S corporations, and trusts to their owners and beneficiaries. The most notable changes involve the corporate Form 1120 and the partnership Form 1065, which are now due March 15 and April 15, respectively. The bill would swap the due dates, giving most C corporations an additional month to file from the time that the K-1 information arrives. The legislation is intended to promote more accurate and earlier filing of business and personal returns. The proposed changes are summarized below, with extension dates in parentheses:

1120: 3/15 (9/15)
1120S:  3/15 (9/15)
1041:  4/15 (9/15) 
1065:  4/15 (9/15) 
1040:  4/15 (10/15)  
TD F 90-22.1:  6/30   
5500:  7/31 (10/15)
1065: 3/15 (9/15)
1120S:  3/31 (9/30)
1041:  4/15 (9/30)
1120: 4/15 (10/15)
1040:  4/15 (10/15)  
TD F 90-22.1:  4/15 (10/15)
5500:  7/31 (11/15)

While these proposed changes will not affect the upcoming tax season, there is belief that this legislation will pass. Let me know what you think about the proposed due date changes.

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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.