Academic journal article Journal of Accountancy

IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Returns

Academic journal article Journal of Accountancy

IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Returns

Article excerpt

Final regulations set the time for automatic extensions of partnership, trust and estate income tax returns at five months (TD 9531). Under this rule, the extended returns and Schedule K-is for partners and beneficiaries will generally be due Sept. 15. The regulations also provide for an automatic six-month extension for pension excise tax returns,

In 2008, the IRS issued temporary and proposed regulations (TD 9407 and REG-1115457-08) reducing the extension for partnership, trust and estate returns to help individual taxpayers and their Form 1040 preparers to receive Schedule K-is that report pass-through income from those sources in time to complete their individual returns by the regular six-month extended filing deadline.

Partnership returns subject to the automatic five-month extension under the final regulations are Form 1065, U.S. Partnership Return of Income, and Form 8804, Annual Return for Partnership Withholding Tax. Form 1065-B, U.S. Return of Income for Electing Large Partnerships, is eligible for an automatic six-month extension.

Most trusts and estates required to file Form 1041, U.S. Income Tax Return for Estates and Trusts, are also subject to the automatic five-month extension; however, bankruptcy estates required to file Form 1041, as well as fliers of Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts, and Form 1041QFT, U.S. Income Tax Return for Qualified Funeral Trusts, will receive six-month, not five-month, extensions.

The final regulations also allow fliers of Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code, to obtain an automatic six-month extension.

To receive an extension, the partnership, trust or estate must generally file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, and comply with other requirements. …

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