Stop-gap Highway Bill Includes New Tax Compliance Measures
An eleventh-hour temporary extension of federal highway and transportation spending is partially paid for by new tax compliance requirements. The new Bill was approved by the House and Senate. President Obama immediately signed the bill into law on July 31.
Return Due Dates
Under the bill, for tax years that begin after Dec. 31, 2015, calendar-year C Corporations will be due April 15 (rather than March 15) and returns of calendar-year partnerships will be due March 15 (rather than April 15). Calendar-year S Corporation returns will continue to be due March 15. For C Corporations with Fiscal year-end filing, the due date will be the fifteenth day of the fourth month following the end of their fiscal year. The bill also aligns the FinCEN (formally FBAR – Report of Foreign Bank and Financial Accounts) due date with the due date for the individual returns, moving it from June 30 to April 15. The bill now allows for an extension for filing the FinCEN to October 15.
Under current law, mortgage servicers are generally required to report to the IRS (Form 1098, Mortgage Interest Statement) certain information. The stop-gap bill imposes additional reporting, including the amount of the outstanding principal balance, the address of the property, and the loan origination date.
Disclosure for Estates
Estates with a positive estate tax liability are now required to report the value of specific items of property, both to the IRS and to beneficiaries. This is intended to prevent beneficiaries from overstating basis upon a subsequent disposition of the property. The legislation includes penalty provisions for any such overstatements. These disclosure requirements are effective for estates filing Form 706 after July 31, 2015.
Highway Funding Law Changes Due Dates
The Bill changes the original or extended due dates for many different types of tax and information returns. The revised due dates and extension periods are generally effective for tax years beginning after December 31, 2015. In other words, they don’t apply to the tax returns for 2015 that are due in 2016.