Effective for the 2017 tax-filing season, there are several important changes to the due dates for filing some federal tax returns. The new due dates are set for partnerships and C corporation returns, as well as FinCen Form 114, Report of Foreign Bank and Financial Accounts (FBAR) and several other IRS information returns.
Due dates related to individual tax returns, estimated tax payments and S corporations will remain the same.
The new due dates will allow for earlier access to the Form K-1, thereby, encouraging a more efficient processing of tax returns and ideally reduce the need for extensions.
Partnerships (Form 1065)
The due date for partnership tax returns is changed to March 15 from April 15 for calendar year partnerships, and to the 15th day of the third month after the year-end for fiscal year partnerships. A six-month extension will be allowed from the due date.
Corporate Tax Return (Form 1120)
The due date for C corporations to file tax returns is changed to April 15 from March 15 for calendar year corporations and the 15th day of the fourth month after year-end for fiscal year corporations.
Louisiana has passed legislation to change the due dates for partnership and corporate returns as well. In Louisiana, partnership returns are now due April 15 (or the 15th day of the fourth month after the year-end) and C corporation returns are now due May 15 (or the 15th day of the fifth month after the year-end).
Other Noteworthy Changes
Exempt Organizations (Form 990)
This informational form filed by exempt organizations continues to be due May 15; however, changes have been enacted that affect the extensions. The new law simplifies the 990 extension process. The new extension will be a single, automatic six-month extension (November 15).
Employee Benefit Plans (Form 5500)
This informational form filed by the administrator or sponsor of an employee benefit plan subject to ERISA continues to be due July 31 with an extension deadline of October 15. Note federal law enacted in December 2015 repealed a previously enacted extension.
Individuals and Businesses — Foreign Bank and Financial Accounts Report (FBAR) (Report 114)
This form is required for individuals and businesses with a financial interest in, or signature authority over, at least one financial account located outside of the United States, and the aggregate value of all foreign financial accounts exceeding $10,000 at any time during the calendar year reported.
This due date change is the most significant for individual taxpayers; forms are now due April 15 rather than June 30. However, for the first time, a six-month extension to October 15 will be available.
The due date for submitting information on wages reported on Form W-2 to the IRS and Social Security Administration has been accelerated to January 31. Under prior law, Form W-2 was due to employees on January 31, but employers had until February 28 (or March 31 if filing electronically) to submit the form to the IRS and SSA.
It is understandable that adjusting to this new timeline can be overwhelming; however, many of these changes better align tax return deadlines, which should make the workflow of practitioners more efficient during the peaks of busy season.
We are here to help. If you have any questions about how this may affect you, contact your Hannis T. Bourgeois advisor for assistance.
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