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BUSINESS FILING EXTENSION CHANGE

The IRS has recently changed the extended period for filing business tax returns, assuming that a timely extension request has been filed. Currently, the extended period to file a business tax return is within six months of when the extension request was filed. The IRS has now changed the extension period to five months after the request was filed. This change will be effective for business tax returns due on or after January 1, 2009. Business entities that will be affected by the new five month extension period are those who file a: 1) Form 1065, U.S. Return of Partnership Income 2) Form 1041, U.S. Income Tax Return for Estates & Trusts 3) Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) This new IRS change is intended to ease the burden on taxpayers who must rely on information being reported from a Schedule K-1 in order to complete their individual tax returns (Form 1040). The new requirement should eliminate individual taxpayers, who are on a six month filing extension, from filing their returns late due to not having access to their K-1 information .