Final Rules for Automatic Extensions of Time to File Partnership, Trust, Estate and Pension Excise Tax Returns (T.D. 9531)

The IRS has released final regulations that provide for a five-month automatic extension of time to file certain returns for partnerships, trusts, and estates other than certain bankruptcy estates. The regulations also provide for an automatic extension of time for filing returns for pension excise taxes. The final regulations reduce the overall taxpayer burden by providing an extension period that strikes the most reasonable balance for these pass-through entities and the large number of taxpayers who require information from these entities for completion of their income tax returns.

Before 2005, pass-through entities were entitled to an automatic three-month extension of time to file certain returns and could also request a discretionary additional three-month extension of time to file. In 2005, the IRS issued T.D. 9229, 2005-2 CB 1051, to simplify the extension process by allowing most taxpayers, including pass-through entities, to obtain an automatic six-month extension of time to file. In 2008, the IRS finalized rules in T.D. 9407, I.R.B. 2008-33, 330, granting an automatic six-month extension of time to file for non-pass-through entities and granting certain pass-through entities a five-month automatic extension of time to file certain returns and requested comments on whether, and how, a five-month extension of time to file for pass-through entities might increase or reduce overall taxpayer burden.

After a public hearing and considering all comments, the IRS determined that a five-month extension for certain pass-through entities best minimized the overall taxpayer burden. Accordingly, the final regulations provide for a five-month automatic extension of time to file certain returns for partnerships, trusts and estates, other than certain bankruptcy estates.

The final regulations also adopt without modification the proposed amendments to 26 CFR part 54, which allow filers of Form 8928, “Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code,” to obtain an automatic six-month extension of time to file the return after the date prescribed for filing the return.

T.D. 9531, 2011FED ¶47,028

Other References:

Code Sec. 6081

CCH Reference – 2011FED ¶36,785C

CCH Reference – 2011FED ¶36,788

CCH Reference – 2011FED ¶36,797

Tax Research Consultant

CCH Reference – TRC FILEBUS: 12,102.10

CCH Reference – TRC FILEBUS: 12,102.20

CCH Reference – TRC FILEBUS: 15,104.20

CCH Reference – TRC FILEBUS: 15,106

CCH Reference – TRC FILEBUS: 15,106.05

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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