Important Tax Provisions in Highway Trust Fund Extension Law

On July 31, 2015, President Obama signed into law P.L. 114-41, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (the “Act”).  Included in the Act are a number of important tax changes.  In this communication, we primarily address some changes in due dates provided by the Act.  These changes are for years beginning after December 31, 2015.  Thus, these changes generally will apply for the first time to 2016 calendar year returns, not 2015 calendar year returns.

Generally, the filing deadlines have been realigned to facilitate timely filing by taxpayers who report income from flow-through entities.

The filing deadline for partnerships will be the 15th day of the third month following the end of the tax year.  For calendar year partnerships this date is March 15, accelerated from April 15 currently.  The maximum extended due date for partnerships is six months.

The filing deadline for C Corporations will be the 15th day of the fourth month following the end of the tax year.  For calendar year C corporations this date is April 15, delayed from March 15 currently.  The extended due date for C corporations can vary, depending on tax yearends.

The extended due date for trusts will be September 30, rather than the current five month extension period ending September 15.

The returns for employee benefit plans filing Form 5500 will be eligible for an automatic 3 ½-month extension period ending November 15 for calendar year plans (currently a 2 ½-month period).

FinCEN Form 114, Report of Foreign Bank and Financial Accounts (commonly referred to as the “FBAR”), will have an original due date of April 15, with a maximum extension of 6 months.  Currently the due date is June 30, with no extensions.  Also, the IRS will be allowed to waive any penalty for late filing by a first time filer.

Other changes in due dates and extensions are provided in the Act.

The Act enacts a number of other changes in the following areas.

  • Consistent basis reporting for transfer tax and income tax purposes.
  • New information reporting requirements for inherited property.
  • Additional details required to be disclosed on mortgage information returns.
  • Basis overstatement now considered income omission for applying the extended six-year statute of limitation period.
  • Use of excess pension assets for future retiree health benefits extended.
  • Veterans with government health insurance will not count for determining “Applicable Large Employer” status under the Affordable Care Act.
  • Receipt of medical care by veterans for service-connected disabilities does not affect Health Savings Account eligibility.
  • Equalization of Highway Trust Fund Excise Tax on propane and liquefied natural gas.

If you have any questions about changes made by the Act, please contact your HM&M tax advisor.

Latest Blog

Sunrise of Crop Field

Agricultural Producers May Qualify for Assistance from Coronavirus Food Assistance Program

The Coronavirus Aid, Relief and Economic Security (“CARES”) Act, enacted March 27, 2020, includes the Coronavirus Food Assistance ...

COVID-19 Impacts on Going Concern Assessments

Introduction to COVID-19 Impacts COVID-19 is a new and evolving crisis, which has been labelled a pandemic by ...

Tax Implications and Incentives for Physician Practices During COVID-19

The rapidly-changing regulatory environment and what this means for physician practices   COVID-19 has changed the way physicians ...

HM&M Updates

Women Propel Innovation & Growth in Surprising Ways at Accounting & Advisory Firms – HM&M Included

HM&M is honored to be included on the 2020 Accounting Move Project report. 2020 Accounting MOVE Project report ...

HM&M Operational Update

For the protection of our HM&M work family, our clients, and others, we are limiting activity in our ...

Randy Garcia Named Shareholder

HM&M is pleased to announce Randy Garcia was named Shareholder of the firm effective January 1, 2020.  Thank ...