United States

Multistate: State Conformity to Federal Due Date Changes

Mar 27, 2017
From KPMG TaxWatch

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Federal Public Law 114-41 made changes to the federal corporate and partnership income tax return due dates and extension periods, effective for tax years beginning after December 31, 2015. Quite a few states took action in 2016 or early 2017 to conform their state-specific due date and extension rules, in whole or in part, to the federal changes. Some states chose to update only the corporate due dates, leaving partnership due dates unchanged. Many states ignored the different federal due dates for C corporations with a June 30 fiscal year-end and instead provided all fiscal year filers with the same period for filing the return.

The federal extension period for C corporations under P.L. 114-41 would have been—from tax year 2016 through tax year 2025—a five-month, six-month, or seven-month period, depending on the taxpayer’s tax year-end. Thanks to action taken by the Internal Revenue Service (IRS), however, the five-month extension period for calendar-year C corporations has moved to six months for tax year 2016 onward.

On the C corporation side, there are still a few states where we are awaiting legislative action or clarification related to extended due dates that may fall before the federal extended due date. Florida (for calendar year C corporations) is one of these states. Unlike states that more generally key off the federal extension period or federal extended due date (usually by regulation), Florida specifically enacted a statute providing a five-month extension period for calendar year C corporations. Therefore, despite the change to the IRS policy to permit a six-month extension, absent legislative action or administrative guidance to the contrary, it appears Florida's extended due date remains October 1 for calendar year C corporations (i.e., two weeks prior to the federal extended due date). Please stay tuned to TWIST for future due date updates.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.