In 2008 the IRS and Treasury Deaprtment issued regulations governing the automatic extension of time to file partnership returns. These rules shortened the automatic extension period for partnerships and certain other pass-through entities from six months to five months (i.e., from October 15 to September 15) based on comments with regard to the difficulties taxpayers invested in partnerships experience in filing their returns when they are due the same date as the K-1.

NAPTP submitted comments to the proposed regulations recognizing the need for partnership investors to have time between receiving the K-1 and filing their own returns, but suggesting that this be done by changing the individual extension period to seven months, rather than shortening the partnership extension period to five. Final regulations were issued on June 23, 2011. In the preamble to the final regulations, the IRS recognized the concerns of both sides of the issue but stated that it did not have the statutory authority to change due dates or extend the automatic extension period beyond six months. It stated that it believes that the five-month extension period strikes the best balance between the need of taxpayers to receive timely information and the need of pass-through entities, “including complex and tiered entities,” to have adequate time to prepare the returns. The five-month extension period for partnerships was therefore not changed.

More Information

Click here to see the MLPA’s (then the NAPTP) 2008 comment letter.

Click here to see the final regulations.