This is the first busy season since the enactment of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, which amended federal tax return due dates. In addition, many states are making corresponding changes to their business income tax filing due dates to conform to the new federal dates for filing returns. For example, in 2016, New York enacted amendments to the New York State and New York City corporation and partnership tax return filing deadlines to conform to the new federal income tax return due dates. This article will summarize these changes.
For 2016, all New York C corporations (except domestic international sales corporations) must file New York State tax returns on or before the 15th day of the fourth month following the close of each tax year (i.e., April 15 for calendar year taxpayers). An automatic six-month extension is allowed upon request, and a corporation may request up to two additional three-month extensions. It should be noted that the first installment payment due date for New York C corporations will remain the 15th day of the third month following the close of each tax year, and therefore the first installment for calendar year 2017 is due March 15, 2017, even though the 2016 calendar year return or extension is not due until April 15, 2017.
For 2016, partnership returns are due on the 15th day of the third month following the close of each tax year (i.e., March 15 for calendar year taxpayers). The new due dates for partnership returns will provide partners with New York Schedule K-1s before their New York tax returns are due. Partnerships are permitted one six-month extension. In addition, a partnership, LLC, or LLP subject to the annual filing fee must now file and remit payment needed on or before the 15th day of the third month following the close of each tax year. Extensions are not allowed for the filing of the form or the payment of this fee.
Unlike corporation and partnership returns, fiduciary return due dates in New York State are unchanged. The length of time for automatic extensions, however, is now 5½ months for these returns.
In New York City, similar changes have been made to conform to both state and federal due dates. New York City’s treatment of federal S corporations, however, will likely cause confusion. New York City treats federal S corporations differently than New York State. For New York State purposes, a calendar year federal S corporation that has not elected to be treated as a “New York S corporation,” and therefore treated as a C corporation, now must file a return by April 15, one month later than the federal calendar year S corporation return due date of March 15. Calendar year federal S corporations that have elected to be treated as New York S corporations will maintain a filing deadline of March 15. New York S corporations are allowed a six-month filing extension; however, the due date to file New York City returns for state S corporations that are taxed as C corporations will again be March 15 for calendar year taxpayers. An automatic six-month extension is allowed, and S corporations may request up to two additional three-month extensions.
In addition, New York City Unincorporated Business Tax (UBT) return due dates for partnerships have also changed. The partnership UBT returns are now due on the 15th day of the 3rd month following the close of each tax year (i.e., March 15 for calendar year taxpayers). An automatic extension of six months is allowed. For unincorporated businesses other than partnerships, the filing deadline and extension provision remains unchanged.
The Exhibit summarizes New York State and New York City due date and extension changes for calendar year taxpayers.
Summary of New York State and City Due Date and Extension Changes for Calendar Year Taxpayers
Due Dates Require Careful Review
Since the changes to federal corporate and partnership tax filing due dates were announced, many states have followed suit to ensure that the required state returns are not submitted prematurely, that is, before the corresponding federal tax returns. CPAs should review the due dates of all state and local client returns to ensure that they are timely filed and advise their clients accordingly as to these changes.