The following list represents some important changes to the Code for 2016 - changes that can be helpful to individuals and corporations. As Yoda always says, “Wise to be in sync with the Code, it is.”
New Tax Return Due Dates
- Calendar year C corporations: returns are now due on April 15th, not March 15th
- Non-calendar year C corporations: returns are now due on the 15th day of the fourth month following the close of the C corporation's taxable year, not the third month (exceptions apply for C corporations with tax years ending on June 30th)
- Calendar year partnerships: returns are now due on March 15th, not April 15th
- Non-calendar year partnerships: returns are now due on the 15th day of the third month following the close of the partnership’s taxable year, not the fourth month
New Information Return Due Date
Taxpayers with certain foreign bank accounts and foreign financial accounts, those individuals required to file FBAR (Foreign Bank and Financial Accounts) returns (FinCEN Form 114), must now file such returns by April 15th - not the previously used FBAR return date of June 30th.
Also enacted in 2016, however, is a first time ever FBAR extension. Individuals who are subject to FBAR may now make use of a newly enacted 6-month extension that allows such individuals to file their FBAR returns up and until October 15, 2016.
Basis Reporting of Inherited Property
Tucked into the mid-July Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 is Code §1014(f), which requires the basis of property received from a decedent to not exceed the basis reported, by the estate, to the Internal Revenue Service for estate tax purposes. Newly enacted §6035 further requires certain executors of estates to report, to both the Service and beneficiaries of an estate, the basis of inherited property received by a beneficiary. Congress, through the adoption of such Code sections, hopes to quash any differences in the eventual basis that is used by a beneficiary for inherited property and the basis that is reported by the estate for estate tax purposes.
We at B.J. Kang Law, P.C. hope that you have a happy, healthy, and successful New Year. Please feel free to contact a member of our firm if you have any questions: firstname.lastname@example.org.