IRS Sets Tax Filing Extension Now To Five Months For Partnership, Estate And Trust Returns


New rules set by the IRS have changed the time of automatic extensions.  These rules affect estate, trust and partnership tax returns.  Instead of the former six month tax filing extension, the new period is just five months.  For most individual taxpayers the new rules will have little to no effect on filing date or individual taxpayer extensions.

The filing options with an extension for these entities was a six month period.  However, the new rules have reduced the amount of time allowed by one month.

In the past, the extension only required the filing of a single form and by filing a second form another extension of three months was added.

At the public hearing on this change on extensions, there was concern issued that taxpayers might not receive information about changes in time to gather necessary paperwork to complete their filings in a timely or accurate manner.

When this proposal went to public hearing, there were just seventy comments made on the changes.  Many of those making comments suggested that the due date be changed instead of shortening the time allowed for extensions.  This could have been accomplished by changing tax day to April 30 for individuals, or extending the individual extension to seven months.  Others making comments, suggested changing the normal filing date for those affected by the shortened extension period be changed to March 15, but still allowing them to request a full six month extension in order to get the necessary information to taxpayers that it would affect.