Income Tax Basis Effective 8-1-2015
On July 30, 2015, I issued a Special Alert regarding “basis consistency provisions” which were buried in the Highway Funding Bill. At that time, the House of Representatives was considering the bill. They passed it and the Senate took it up in short order, passed it, and sent it to the President who signed it on Friday, August 1. It appears that the effective date of this portion of the act is August 1, 2015 – immediately for any estate tax returns filed after the date of enactment. Readers are invited to examine Act Section 2004(d) and offer their interpretations.
Due Dates Changed
In addition, the Highway Funding Bill changes some due dates and some extension provisions. First, it makes tax returns for partnerships and S corporations due on March 15 (for entities that have fiscal years, the due date is the 15th day of the third month following the close of the fiscal year). C corporations likewise have a new date, and it is April 15 or, for corporations filing on a fiscal year, the 15th day of the fourth month following the close of the fiscal year. FinCen Report 114 (FBARs) are due April 15.
In addition to the primary due dates, the extension dates are being changed. Partnership extensions run to September 15, trusts to September 30 and corporations now get an automatic 6-month extension instead of the old 3-month extension. There are also new extension rules for a host of others. The effective date for the above changes is for tax returns for taxable years beginning after December 31, 2015. For C corporations with a June 30 fiscal year (many public corporations use the June 30 fiscal year), the effective date is for tax years beginning after December 31, 2015.