As you may know, change can be painful. True to form, the changes that are occurring this year for tax-filing due dates promise to deliver their share of taxpayer discomfort. The overall intention of the changes was to make businesses that are flow-through entities due in mid-March and entities that pay their own tax, due in mid-April. This way, the businesses that have K-1 forms that must be reported on the personal returns will be due before the personal returns are due. From an accountant’s perspective, this moves up to the March filing deadline a lot more returns than get moved back to the April filing deadline.
Generally, the “entity of choice” for new businesses is the limited-liability company (LLC) due to legal-liability protection and fewer restrictions on number of members and distributions. If the LLC has more than one member, then a partnership return is required. Partnership returns were just moved up to the March filing deadline which is what made the biggest difference for this year’s March 15 due date.
Of course, everyone remembers the massive snowstorm that hit March 13-15? I know I would like to forget it. Those living in areas affected by “Winter Storm Stella” were given an extension for filing tax returns from March 15 to March 20.
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Going forward, it’s time to do your homework to avoid late-filing penalties. Effective for years beginning after Dec. 31, 2016, the following changes to tax-return due dates need to be followed.
Partnership — Form 1065
• The new due date for Form 1065 was March 15 with an extended due date of Sept. 15.
• Fiscal-year filers must deliver tax returns by the 15th day of the third month after year-end.
S Corporation — Form 1120S
• The due date for Form 1120S was March 15 with an extended due date of Sept. 15. No change from prior years.
• Fiscal-year filers must deliver tax returns by the 15th day of the third month after year-end.
Trust and Estate — Form 1041
• The due date for Form 1041 is April 15 with a new extended due date of Sept. 30.
• Fiscal-year filers must deliver tax returns by the 15th day of the fourth month after year-end.
C Corporation — Form 1120
• The new due date for Form 1120 is April 15 with an extended due date of Sept. 15.
• Fiscal-year filers have to deliver tax returns by the 15th day of the fourth month after year-end.
• For those June 30 fiscal year-ends, the return will be due on Sept. 15, but features an extension date of April 15. So, you get an extra one-month extension.
Individual — Form 1040
• The due date for Form 1040 is April 15 with an extended due date of Oct. 15. No change from prior years.
• Tax returns are due this year on April 18, 2017, due Emancipation Day in the District of Columbia.
Employee-Benefit Plans — Form 5500
• The due date for Form 5500 is July 31 with an extended due date of Oct. 15. No change from prior years.
Foreign Bank Account — FinCEN Report 114
• The new due date for FinCEN Report 114 is April 15 with an extended due date of Oct. 15.
• The extension is automatic; there is no form to be filed.
Information Returns — Form W-2, 1099-MISC
• The new due date for Form W-2 and 1099-MISC was Jan. 31, but if the forms are filed electronically they are due to the IRS/SSA on March 31.
Information Returns — Other Forms 1099
• The new due date Other Forms 1099 was Feb. 28, but if the forms are filed electronically they are due to the IRS/SSA on March 31.
Tax-Exempt Entity — Form 990
• The only change here is to the extensions. There used to be two, three-month extensions, but there is now only one extension for six months.
It is important to note that New York State is conforming to the federal changes for both C Corporations and partnerships. Not all states are conforming to the federal due-date changes. You need to check the specific state statutes to be sure that you file on time. Generally, if the partnership due dates do not conform to the federal date, they would still be due in April, but it is not always on April 18. You may want to follow Santa Claus’s example — make a list and check it twice.
Paula Deckman, CPA, is a principal on the tax team in The Bonadio Group’s Syracuse office. Contact her at pdeckman@bonadio.com.