A very important change has been made in the due dates for some Federal tax returns for 2016, but little publicity has surrounded these date changes. To make sure our readers are up to date, we’ve included a list below of the coming changes.
- Partnership returns (Form 1065) are due March 15, 2017. This means that partnerships must provide Schedule K-1 information to their investors a full month before their individual returns are due, which should reduce the number of extensions and amended returns the IRS sees because a taxpayer (or corporation) is waiting on a K-1. For Partnerships that are not on a calendar-year basis, the due date is the 15th day of the third month following the end of the tax year.
- C Corporation returns (Form 1120) are now due April 15, 2017. This allows C Corps that have invested in flow-through entities (such as Partnerships or S Corps) an extra month to receive their K-1 information. C Corps not on a calendar-year basis have until the 15th day of the fourth month following the close of their tax year to file their return.
- Do you have signature authority over any foreign bank accounts? Does the total of those accounts exceed $10,000? If so, you’re required to file a Foreign Bank Account Report, or FBAR. Until now, the annual due date for the FBAR filing was June 30th – this has been moved up to April 15, 2017. It’s not all bad news, though – unlike the prior rules, which did not allow an extension to file, FBAR filers may now request a six-month extension, just as with their tax return.
- Trusts and Estates (Form 1041) are still due April 15th, but those requesting an extension now have until September 30, 2016, an increase of 15 days from last year.
Overall, these changes are mostly aimed at improving the flow of information needed for each return. And while the FBAR change may be a headache for some, as long as you file an extension, you now have two and a half more months to file than you did before.
To sum up, if you have a Partnership, your return is due a month earlier; C Corporations now have an extra month to file; Trusts and Estate extensions now have an extra 15 days; and FBAR filers need to file much earlier, but are now allowed to file an extension. Don’t miss your deadline!