For the 2016 tax reporting year (2017 filing deadlines) there are several changes to tax filing and form distribution deadlines. The good news is that the well-known April 15th deadline for individual tax returns will stay the same. However, a number of other reporting and extension deadlines have been changed, modified or in certain cases eliminated. The changes which were mandated as part of Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, provided a two year grace period for implementation. As 2017 quickly approaches, it’s important to be aware of these changes to plan enough time for filing preparation and avoid penalties for non-compliance. To help clients, prospects and others prepare for the changes; JLK Rosenberger has provided a summary of the changes below.
2016 Tax Year Filing Changes
- Partnership Returns – Under existing regulations, IRS Form 1065 is due on April 15th. However, starting in 2017, the filing deadline changes to March 15th to allow individual taxpayers to receive essential tax information reported on the K-1.
- C-Corporation Returns – Starting 2017, C-Corporations will have an extra month to complete and submit their income tax filing with the IRS. The new due date is shifted from March 15th to April 15th for companies with a calendar year-end. Those who have an off calendar year-end will have until the 15th day of the fourth month after the close of the fiscal year.
- Report of Foreign Bank & Financial Accounts (FBAR) – This change impacts taxpayers who have a foreign financial account with a balance of over $10,000 (in a single account) at any time during the year. Under current regulations, these filings are due on June 30th. However, starting in 2017, taxpayers need to file this form with the IRS no later than April 15th. The good news is that an automatic extension until October 15th is now available.
- Trust & Estate Tax Returns – Under existing rules, the extension period is for only five months from the filing deadline. However, to provide taxpayers and preparers with a reprieve, the IRS will be providing an extended period of five-and-one-half months, granting many the time necessary to prepare the return.
- IRS Form 990 – Starting in 2017, these nonprofit returns can be automatically extended for six months. Under existing regulations, tax-exempt organizations would receive an automatic extension of three months and then be required to request an additional extension of three months if needed.
- IRS Form 5500 – Benefit plan administrators will be pleased to learn that the IRS will allow an automatic 3 ½ month extension period ending on November 15th for plans with a calendar year-end.
2016 Form Distribution & Other Changes
- Form 1099 & W-2’s – The main change for 2017 is when these filings are due to the IRS. Under existing regulations, companies have until January 31st to send these forms to employees and contractors. However, they also had until March 31st to electronically file the same forms with the IRS. In 2017, companies will be required to submit electronic copies to the IRS no later than January 31st.
- Mortgage Interest Statement – Under new regulations the information reported to taxpayers about mortgage interested paid has changed. The new form will include the principal balance, date when the mortgage was started and the address of the property for which the mortgage applies to. These changes are designed to make it easier for the IRS to verify the proper mortgage interest deduction amount.
There are a number of changes that both companies and taxpayers need to be aware of to ensure compliance with new rules. It’s also important to be aware of the updated extension rules as it may impact a taxpayer’s filing timeline. If you have questions about the new filing deadlines and extension regulations or would like assistance with tax planning or compliance, JLK Rosenberger can help. For additional information, please call us at 818-334-8625, or click here to contact us. We look forward to speaking with you soon.