Tax Tip for July 2008

The IRS has shortened the extension period from 6 to 5 months for Partnerships (including Limited Liability Companies filing as partnerships), and Estates/Trusts that file Form 1041. This one-month reduction is effective for returns due on or after January 1, 2009. Note that the original due date of April 15^th (for calendar year taxpayers) has not been changed. Thus, the new law changes the extended due date to September 15^th, rather than October 15^th. The rationale for the earlier due date is that this will allow individual taxpayers to receive their Schedule K-1s in advance of the October 15^th extended filing deadline for individual income tax returns.