On July 31, President Obama signed into law the Surface Transportation and Veterans Health Care Choice Improvement Act (the “Act”). The Act makes a number of changes to filing deadlines for various tax returns including the Report of Foreign Bank and Financial Accounts (“FBAR”) on FinCEN Form 114 (formerly known as Form TD F 90-22.1).

FBAR Filing Deadline Now April 15

A U.S. person generally is required to file Form 114 with the U.S. Treasury Department to report the existence of a financial interest in, or signature authority over, financial accounts located outside the United States that had an aggregate value of more than $10,000 at any time during a calendar year. Prior to the Act, FinCEN Form 114 was required to be filed by June 30 of each year (with respect to the prior calendar year) and no extension was available. Under the Act, FinCEN Form 114 will be required to be filed by April 15 of each year (with respect to the prior calendar year) and a six-month extension will be available. In addition, the Act directs the IRS to waive penalties for first-time FBAR filers who fail to properly request an extension. These provisions apply for taxable years beginning after December 31, 2015.

Changes to Return Filing Deadlines for Partnerships and Corporations

The Act also changes the due dates of various other tax returns:

1. Annual income tax returns for partnerships and S corporations will be due on the 15th day of the third month after the close of the taxable year (i.e., March 15 for a calendar year taxpayer), subject to a six-month extension. These returns were previously due on the 15th day of the fourth month after the close of the taxable year (i.e., April 15 for calendar year taxpayers).
2. Annual income tax returns for C corporations will be due on the 15th day of the fourth month after the close of the taxable year (i.e., April 15 for calendar year taxpayers), subject to a six-month extension. These returns were previously due on the 15th day of the third month after the close of the taxable year (i.e., March 15 for calendar year taxpayers).

Subject to certain special transition rules, these provisions are effective for taxable years beginning after December 31, 2015.

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If you have any questions regarding these new deadlines, please contact Ronald P. Cima (212-574-1471), Jonathan P. Brose (212-574-1615), James C. Cofer (212-574-1688), Peter E. Pront (212-574-1221) or Daniel C. Murphy (212-574-1210).