Operate as an LLC, IRS changes extension policies for some

Some business owners will have one fewer month to file their federal tax returns under a new rule implemented by the Internal Revenue Service.
The IRS says the change will reduce the length of extensions for individual filers who report income from partnerships to five months from six. It says the move will ease the burden on taxpayers who must report information from Schedule K-1 and similar documents on their individual tax returns.
The previous extension date often forced businesses and individuals to file on the same day, Oct. 15.
Coinciding filing dates creates a burden for individual taxpayers who rely on the information from Schedule K-1 and other statements to prepare and file their personal tax returns in a timely manner, the IRS says.
The change affects extension requests for tax returns due on or after Jan. 1. It applies to businesses that file the following returns and forms that have a tax year ending on or after Sept. 30:
Form 1065, U.S. Return of Partnership Income;
Form 1041, U.S. Income Tax Return for Estates & Trusts; and
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446).

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