As part of the highway funding bill passed in July of 2016, many tax return due dates are changed. The due date changes with the most impact will likely be those changes for partnership tax returns (Form 1065) and C Corporation tax returns. Essentially the due dates have swapped. The significant reorganization of due dates is intended to assist individuals involved in pass-through entities in receiving information required to prepare their individual returns in a more timely fashion.
For tax returns reporting 2016 information that are due in 2017, the following due date changes will apply. These changes are effective for tax years beginning after December 31, 2015 for calendar year filers (tax year 2016 and beyond):
For Fiscal year filers:
- Partnership and S Corporation tax returns will be due the 15th day of the third month after the end of their tax year. The filing date for S Corporations is unchanged.
- C Corporation tax returns will be due the 15th day of the fourth month after the end of the tax
year. A special rule to defer the due date change for C Corporations with fiscal years that end on June 30 defers the change until December 31, 2025 – a full ten years.
Other changes include:
- Filers of U.S. Return of Partnership Income (Form 1065) will have a longer extension period, a maximum of six months, rather than the current five month extension, leaving the current (2015 and prior years) extended due date in place (September 15th for calendar year taxpayers.)
- U.S. Income Tax Return for Estates and Trusts (Form 1041) will have maximum extension of five and a half months, two weeks longer than the current (2015 and prior years) five month extension.
- Annual Return/Report of Employee Benefit Plans will have a maximum automatic extension of three and half months.
- Report of Foreign Bank and Financial Accounts (FinCEN 114, FBAR) will be due on April 15th and
permitted to extend for six months, thus aligning the FBAR reporting with the individual tax return reporting. Additionally, the IRS may waive the penalty for failure to file a timely extension request for any taxpayer required to file for the first time.
What else is Changing:
Until now, employers had two dates to keep in mind when remitting W-2’s:
- January 31, to provide employee copies, and
- February 28, for paper filings submitted to the Social Security Administration (March 31 for electronic filings)
Beginning with 2016 forms, employers will now have one filing deadline for all Federal W-2s, January
31. This is true for both employee and agency copies, or whether filing paper or electronic returns.
What about Form 1099-Misc? The new January 31 deadline applies to certain types of 1099s. If you’re filing Form 1099-Misc and reporting amounts in Box 7: Nonemployee Compensation, then you will need to meet the new filing deadline of January 31.
If you don’t have amounts in Box 7, then the deadline remains February 28 for paper filings or March 31 for electronic filings.