IRS Reduces Extension Period for Certain Business Taxpayer Filings

The Internal Revenue Service has issued temporary and proposed regulations that will reduce the allowed extension period from the current six months to five months. These changes affect those business taxpayers who file form 1065 - U.S. Return of Partnership Income, form 1041 - U.S. Income Tax Return for Estates & Trusts, and form 8804 - Annual Return of Partnership Withholding Tax. The change applies to those businesses with tax years ending on or after September 30, 2008.

By reducing the extension period the IRS is eliminating having the extended due date of October 15 for both individual and calendar year business tax returns. Calendar year business filers affected by the change will now have a September 15 due date with extension. The change does not apply to corporations.

The IRS announced the changes in IR-2008-84 which can be found at www.IRS.gov.

*****

William B. Riccio, CPA/CITP is a certified public accountant. He is president of Riccio & Associates and can be reached at (216) 255-6913 or by e-mail at william@ohiocpa.net.