The proposed regulation comes as good news for individuals since they often have the same October 15 extension due date as these particular entities. The same-day deadline made the filing process burdensome for people who rely on
Schedule K-1, Partner’s Share of Income, Deductions, Credits, Etc., (and similar documents) to fill out their tax returns.

“A large number of non-client partnerships provide Schedule K-1s in late September and early October, making it very difficult for individuals to complete their returns by October 15. Changing the calendar-year extension deadline from October 15 to September 15 for partnership, estate, and trust returns resolves the timing challenge,” remarks Mitch Gerstein, tax principal with LarsonAllen.

As a result of this regulation change, most taxpayers with ownership interests in calendar-year pass-through entities (partnerships, estates, and trusts) will now receive Schedule K-1 at least one month prior to completing their own individual tax returns by the extended October 15 deadline.

Effective date this year
This regulation change will be effective for extension requests for partnership, estate, and trust tax returns due on or after January 1, 2009 (tax years ending on or after September 30, 2008).

Specific tax returns impacted
The reduced filing extension period applies to both fiscal and calendar-year partnerships, estates, and trusts, which file the following:

• Form 1065, U.S. Return of Partnership Income
• Form 1041, U.S. Income Tax Return for Estates & Trusts
• Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

Submit the automatic five-month extension on Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.

This regulation doesn’t change the process to request extensions.

Due date schedule
Below are the tax return deadlines for individuals, partnerships, estates, trusts, and S corporations:

	Calendar-Year Deadline	Extended Deadline
S Corporation Tax Returns	March 15	September 15
Partnership, Estate, and Trust Tax Returns	April 15	September 15
Individual Tax Returns	April 15	October 15