There are some changes in due dates for certain federal tax returns, which will be effective for the 2017 filing season (the 2016 tax year) for calendar year-end filers. The changes relate mostly to flow-through entities, including S-corporations and partnerships that provide Schedule K-1s (partner’s/shareholder’s share of income, deductions, credits, etc.), containing investment information of partners/shareholders.
The new due dates will hopefully allow for earlier access to the K-1s, which will encourage a more efficient processing of tax returns and ideally reduce the need for extensions.
What does this mean to you?
As you gather tax documents for the coming tax season, we have compiled some suggested actions for your consideration to facilitate a smooth process.
Partnerships (Form 1065) — The due date is moved from April 15 to March 15 or the 15th day of the third month after the year-end. This is perhaps the most significant of all the changes and will impact many taxpayers.
S Corporation (Form 1120S) — No change, due dates remain March 15, allowing for preparation of Schedule K-1s as they relate to individuals and organizations.
C Corporations (Form 1120) — Due date moved from March 15 to April 15; in most cases, returns will be due on the 15th of the fourth month after the year-end. However, although the due date of these returns has been pushed back a month, we encourage clients to submit the financial information necessary to complete these returns as soon as possible.
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 Oct. 15 will be available.
We understand that the deadline changes and implications of those changes can seem daunting. Failing to file the necessary forms, missing deadlines or missing payments can result in penalties so please feel free to contact one of our offices with questions or for clarification about any of the changes noted here. You can reach us in Rutland, Vermont (802)775-7132 or Williston, Vermont (802)878-1963 or email [email protected].