New Tax Return Due Dates
With the New Year underway, we are on the brink of beginning the fifth season of the year, known to most as “tax season”. With tax season, looming change is in the air. During the summer of 2016, Congress passed legislation that changed the due dates for some of the most popular tax returns. In addition, there were changes enacted that affected the extension periods for some returns.
Traditionally, all calendar year-end corporate tax returns have been due by March 15th with the ever popular partnership tax returns due one month later by April 15th. It is here that we find the biggest impact of the new law. Partnership tax returns will now be due one month earlier on March 15th. The logical explanation for this would be due to the fact that partnerships are flow-through entities, meaning they pay no tax, but the tax is paid at the individual level of the partners. The partners need their respective K-1s in order to file their individual tax returns. In the past, the due dates for partnerships and individual returns have been the same which on occasion made it difficult to file the individual tax returns timely.
As a give and take, Congress will now grant calendar year-end C corporations an additional month to file their returns, with the new due date being April 15th. C corporations pay their own tax and don’t necessarily intermingle with the individual tax returns like flow-through entities do. Flow-through S corporation and partnerships will have March 15th as their due dates, and C corporations will now have the April 15th deadline.
The extension period for both calendar year partnership and S corporation returns will be 6 months or September 15th. The extension period for calendar year C corporations will be five months with an extended due date of September 15th. In another big change, non-profit organizations will no longer need to file two extensions. The Form 990 will still be due on May 15th; however, the extension will be granted for 6 months to November 15th. The first 90-day extension until August 15th has been removed.
Over the past several years much attention has been given to the new Foreign Bank Account Reporting (FBAR) requirements. The FinCEN 114 return must be filed to disclose foreign bank accounts. Prior to the law changes, the FinCEN report was due by June 30th with no extensions. This return will now be due two months earlier on April 15th, but filers will be able to extend this filing for six months until October 15th.
Lastly, there have been some changes regarding the due dates of some informational reporting for W-2s and 1099s. Historically, taxpayers have been able to file the government copies with the IRS and Social Security Administration by February 28th but will now be required to submit the government copies of Forms W-2 and certain 1099-MISC by January 31st.
Please access the below link to view a full chart of the above mentioned changes and more. Feel free to contact our office for questions regarding your upcoming due dates.Article by: Jeremy Fortner, Tax Manager