If you have not heard, the IRS has changed the due dates for filing federal tax returns for businesses. The changes are effective for 2016 tax returns prepared during the 2017 filing season. The modifications relate to pass-through entities, partnerships and corporations (and LLCs taxed as either a partnership or corporation) that must provide Schedule K-1 statements to their partners, shareholders and members. The idea is to make the K-1 statements available to partners, shareholders and members before their personal tax returns are due.
The reason for the changed tax return filing deadlines is to encourage an efficient processing of tax returns and reduce the need for extensions. Due dates to file individual tax returns and make estimated tax payments will remain the same; however, one new filing date does affect individuals with offshore accounts. The new tax return filing deadlines are summarized below.
Partnerships (Form 1065). The due date is moved from April 15th to March 15th, or the 15th day of the third month after the year end for a fiscal year end. The extended due date for partnerships continues to be September 15th, or the 15th day of the ninth month after the year end for a fiscal year end.
C-Corporations (Form 1120). The due date is moved from March 15th to April 15th, or the 15th day of the fourth month after the year-end. The extended due date for C-Corporation tax returns will remain at September 15th, until the year 2026, when it will move to October 15th.
S-Corporations (Form 1120S). The due date remains March 15th, allowing for preparation of the Schedule K-1s as they relate to individuals and organizations. The extended due date for S-Corporations remains September 15th.
Trusts and Probate Estates (Form 1041). The initial due date remains at April 15th, or the 15th day of the fourth month after the year end for a fiscal year-end. The extended deadline for these returns is September 30th.
Exempt Organizations (Form 990). The due date remains at May 15th, or the 15th day of the fifth month after year-end for a fiscal year-end. The final due date remains November 15th or the 15th day of the eleventh month after year end for a fiscal year end. The 990 return now has only one, automatic six-month extension to file the return to eliminate the need to prepare and file two consecutive ninety-day extensions.
Foreign Bank and Financial Accounts Report (FinCEN Report 114). This report is required for an individual or legal entity that has a financial interest in, or even signature authority over, one or more financial accounts outside the U.S. and the total value of the foreign financial account(s) exceeds $10,000 during a calendar year. The due date for filing is April 15th. Now there is a six-month extension to file the return by October 15th.
Be sure to contact your CPA early this year to discuss whether these changes affect your tax deadlines. If you are taking the time to review your business or estate plans and need legal assistance, please contact the attorneys at Stross Law Firm at 813-852-6500 for a free 30-minute consultation.