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Due Date for Partnership and Fiduciary Income Tax Returns to Change Next Year?

The IRS issued proposed regulations that announced a change in the extended due date for certain business returns to help individuals better meet their filing deadlines. Currently, partnership and fiduciary income tax returns are due on April 15 and are eligible for an automatic six-month extension until October 15.

Both partnership and fiduciary (trust and estate) income tax returns file a Form K-1 that is sent to the partner and/or beneficiary. This form provides tax information that the individual is required to include on their individual income tax return. Partnerships do not pay tax; all income is passed through to the partner's fiduciary returns are semi-flow-through type entities, some or all income can remain in the trust or some or all the income can flow through to the beneficiary. The problem is that partnerships and fiduciary (trusts) have an extended due date that matches the due date of the individuals. Consequently, when partnerships or fiduciary returns provide tax information to the individual close to October 15, it makes it very difficult for the individual to file a complete and correct return by the October 15 deadline.

The proposed rules will reduce the extension period for partnerships and fiduciary returns to five months rather than six months. This will push up the final due date for partnership and fiduciary returns to September 15, one month prior to the due date for individual income tax returns. These proposed rules are to apply to any return due on or after January 1, 2009 (i.e., calendar 2008 partnership and fiduciary income tax returns).

For more information, please contact Mike Calahan at 312-980-2996 or your Blackman Kallick representative.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.