Are you ready for the new due dates for 2016 tax returns due in 2017? Recently enacted legislation has changed some due dates in order to facilitate a more logical flow of information, allowing taxpayers and preparers more ability to timely prepare and file returns.
Individual tax return (Form 1040) due date of April 15th and extended due date of October 15th did not change! These dates are said to be “cut in stone”! See below regarding FinCen Form 114, if applicable.
Partnership and LLC return (Form 1065) due dates have moved up a month…they are now due on March 15th. If an extension is filed, the due date will be September 15th.
S Corporation return (Form 1120S) due dates remain the same…they are due on March 15th. If an extension is filed, the due date will be September 15th.
Trust returns (Form 1041) original due date remains the same (April 15th); however, the extended due date is now September 30th.
Corporation return (Form 1120) due dates have been pushed back a month to April 15th for calendar-year returns. If an extension is filed, returns are due Sept. 15th until 2026, see note below. For fiscal year companies, in most cases, returns will be due on the 15th day of the fourth month after the year-end.
Note: Calendaryear C corporations can get extensions until Sept. 15 until tax years beginning after 2025, when the extended due date will be Oct. 15. June 30 fiscal yearend C corporations (returns due Sept. 15) can get extensions to April 15 until tax years beginning after 2025; after 2025, June 30 fiscalyearend C corporations will have an Oct. 15 due date and can get extensions until April 15.
FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) due date has changed from June to April 15th. An extension can be filed now to grant additional time (until October 15th).
State Returns – Many states are likely to follow the above federal due date changes but may need to enact legislation in order to make those changes. Louisiana has not made those changes yet…stay tuned.
Forms W-2 and 1099 Series – Acceleration of Due Dates for Filing Information returns
W-2 and 1099 Forms have generally been due to recipients by January 31st and due to the IRS/SSA by February 28th (or March 31 if filed electronically). For the 2016 Forms due in 2017, returns will be due to the IRS/SSA by January 31st, the same day they are due to the recipients.
Businesses should review accounting records now in order to verify that vendor information is complete and ready to file 1099 forms at the end of the year.
Why change the due dates now?
If you are wondering why these changes have been implemented and how they will be helpful, continue reading below: The partnership Form 1065 is now the first return due (March 15th). All other entities and individuals can be partners in a partnership and may need information from Schedules K1 from partnerships to complete their tax returns. For this reason, it is both logical and helpful to many that it be completed first.
Once partnership and S corporation returns have been filed by March 15, individuals, trusts, and C corporations will have the information (K-1s) they need from their pass-through entities to file timely returns. Trusts will have two more weeks after receiving extended partnership and S corporation Schedules K1 to finalize their extended returns and issue their Form 1041 Schedules K1 to beneficiaries, who will have an additional two weeks to complete their personal returns. Taxpayers with foreign accounts will have all the information needed to complete FinCEN Form 114 at the same time as the individual tax return due date and extension.
C corporation new due dates of April 15 (or the 15th day of the fourth month following the close of the tax year for most fiscalyear corporations). Many C corporations previously needed to extend their returns because they were waiting on audited financial statements. Audited financial statements are typically complete by the end of March. These corporations may no longer need to extend the income tax return.
It makes logical sense…only a tax season will tell whether the new dates truly make a difference in the hectic, fast-paced busy season!
For a quick-reference guide on the new due dates, click the link below to access the AICPA Federal Due Date Chart