The IRS and Congress made headlines by agreeing to change tax return filing and extension deadlines for the 2017 filing season (i.e., dates for filing 2016 returns). Their goal might be to spread at least some of the busy tax workload over a longer period – and relieve stress from taxpayers, preparers, and the IRS.
This Just In: New Filing Deadlines
Individual income tax returns are still due on April 15, and the automatic six-month extension remains in effect. However, Congress changed some other filing deadlines and extensions – primarily those for partnership tax returns, corporate tax returns, information returns, and Reports of Foreign Banks and Financial Accounts (FBAR), which is also known as the FinCEN 114.
The Department of Treasury requires the FinCEN 114 from those who have financial authority over (or interest in) at least one foreign financial account valued at $10,000 or more. If a person has some level of interest in more than one foreign financial account, then the individual must file FinCEN 114 if all of the accounts have a combined value of at least $10,000.
Breaking News: Summary of New Tax Filing & Extension Deadlines
|TAX FORM||OLD DATE||NEW DATE FOR 2016 RETURNS||NOTES|
|Form 1065||Filing||April 15||March 15||If the partnership does not operate on a calendar year, then the return will be due on the 15th day of the third month following the close of the tax year.|
|Extension||September 15||September 15*||Partnership returns will have a maximum extension of six months, one month longer than the current extension. The extension will end on September 15 for calendar-year taxpayers.|
|Form 1120||Filing||March 15||April 15||For non-calendar-year corporations, the return will be due on the 15th day of the fourth month following the close of the tax year. Note that corporations with a June 30 year-end will retain a September 15 due date until 2026, when they will shift to October 15.|
|Form 1120S||Filing||March 15||March 15*|
|Form 1041||Extension||September 15||September 30||Has a maximum extension of five and a half months (a five-month extension currently applies). The extension ends on September 30 for calendar-year taxpayers.|
|Form 5500 Series||Extension||October 15||October 15*||Has a maximum automatic extension of three and a half months, one month longer than the current extension period. The extension ends on October 15 for calendar-year filers.|
|FBAR (FinCEN 114)||Filing||June 30||April 15|
|Extension||N/A||October 15||FBAR filers are now eligible for a six-month extension.|
|Form W-2||Filing||Paper: February 28 (or February 29 in leap years)
Electronic: March 31
|January 31||Deadline applies to both paper and electronic returns. January 31 is also the deadline for distributing Form W-2 to employees.|
|Form W-3||Filing||Paper: February 28 (or February 29 in leap years)
Electronic: March 31
|January 31||Deadline applies to both paper and electronic returns.|
|Form 1099-MISC with nonemployee compensation (box 7)||Filing||March 31||January 31||January 31 is also the deadline for distributing the Form 1099-MISC to recipients. This is unchanged.|
|Form 1099-MISC without nonemployee compensation (box 7)||Filing||Paper: February 28 (or February 29 in leap years)
Electronic: March 31
|Paper: February 28 (or February 29 in leap years)*
Electronic: March 31*
|January 31 is also the deadline for distributing the Form 1099-MISC to recipients. This is unchanged.|
*No change from last year.
Making the Front Page: Information Return Penalties
The IRS assesses a penalty for every information report that a business does not file on time. However, those who pay attention to the deadlines could avoid those penalties that might otherwise cost them heavily. It is important to note that the fines increase the longer a taxpayer waits to file a return. The fees for 2016 returns are as follows:
- $50 per return that is fewer than 30 days late,
- $100 per return that is 31 days late but submitted before August 1,
- $260 per return that is either submitted after August 1 or unintentionally not submitted at all, and
- $530 per return that a taxpayer intentionally fails to submit.
Except in cases of intentional disregard, there are limits on the total amount of penalties that a single taxpayer will pay. They vary based on the size of the entity and the extent of the tardiness, but the maximum amount could be as high as $3.2 million. Therefore, it is critical that businesses submit their information returns on time.
Hot Off of the Press: CRI Can Help You Plan for the New Tax Deadlines
While some dates are later than they were for the 2016 season, others will arrive sooner than you may expect. Nonetheless, CRI has the exclusive on how the new tax deadlines could impact your business. Contact one of our tax professionals so that we can give you the inside scoop on how to proactively plan around the new dates.