Each spring, Americans remember – at some point – that it’s tax season and that their tax return needs to be filed.
The official deadline for your federal income tax return is April 15th – but that can shift on occasion, for example if it falls on a holiday or weekend.
Beginning January 1, 2017, the IRS has changed the due dates of some tax return types. These changes will hopefully streamline the various tax deadlines for many taxpayers. On July 31, 2015, then-President Barack Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 into law, making new tax return due dates effective for tax years beginning after December 31, 2015 (applicable to 2016 tax returns and the 2017 filing season).
NEW DUE DATES
It was determined that the individual tax return due date of April 15th and extension until October 15th are and were “cut in stone.” This means, no changes to these deadlines have been made.
The new federal due dates apply to 2016 tax returns and the 2017 filing season and beyond. It is important to note that it applies to tax years beginning after December 31, 2015.
MARCH 15 (EXTENSION UNTIL SEPTEMBER 15):
- Form 1065, U.S. Return of Partnership Income
- Form 1120S, U.S. Income Tax Return for an S Corporation
This due date applies not only to the tax return, but also to the Schedules K-1 that the entity must provide to its owners, partners or shareholders.
APRIL 15 (EXTENSION UNTIL OCTOBER 15, UNLESS NOTED BELOW):
- Form 1040, U.S. Individual Income Tax Return
- Form 1041, U.S. Income Tax Return for Estates and Trusts (extensions until September 30th)
- Form 1120, U.S. Corporation Income Tax Return (extensions until September 15th until 2026)
- FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)
Note: Calendar-year C-corporations can get extensions until September 15th until tax years beginning after 2025, when the extension due date will be October 15th. June 30 fiscal-year-end C-corporations (returns due September 15) can get extensions until April 15th until tax years beginning after 2025; after 2025, June 30 fiscal-year-end C-corporations will have an October 15th due date and can get extensions until April 15.
MAY 15 (EXTENSION UNTIL NOVEMBER 15):
- Form 990, Return of Organization Exempt from Income Tax
Note: This due date is for calendar-year exempt organizations. The new due date is the 15th day of the 5th month following the end of the organization’s taxable year, e.g. June 30 fiscal-year-end organizations would have a due date of November 15.
Extensions will also now be a single, automatic 6-month extension, eliminating the need to process the current first 90-day extension.
WHAT DOES THIS MEAN FOR TAXPAYERS?
For the 2017 filing season and beyond, taxpayers should start to see that they have timely and accurate information needed from flow-through entity Schedules K-1. This will eliminate the need for many extensions, estimates and amended returns resulting in a smoother and more efficient tax return preparation process.
Over the next year, the IRS should be updating the relevant regulations as the legislation instructs the Service to modify existing regulations and provide guidance for implementing the new due dates.
Unsure when your entity’s tax return may be due? Contact us with your questions!