There are changes in due dates coming for many different business tax returns beginning in 2017, and many business owners are unaware of these changes.  What’s changing and how is it changing?

Prior to the coming law change, taking effect for 2016 tax filings, Corporations (including S corporations) with a calendar year-end  were required to file their income tax returns by March 15 each year. Income tax returns for partnerships and LLCs with calendar year-ends were due on April 15. Since the due date for partnership returns has fallen on the same as the due date for individual tax returns, individuals owning partnership interests often had to file for extensions, because their Schedules K-1 often did not arrive early enough to complete their 1040s. 

Similarly, under prior law, although businesses have been required to issue W-2s and 1099s to recipients by January 31 each year, the copies they file with the federal government have historically not been due until the end of February, or, in certain cases, even later.

Read more from Gary Sigman:  Relief From a Tax Penalty You May Not Have Even Known About

So, what’s changing?  Under the new law, the following changes are generally effective for returns for tax years beginning after December 31, 2015:

• Partnerships and S corporation returns (with a calendar year-end) will be required to file their income tax returns by March 15^th of each year. As a result, the filing deadline for partnerships has been accelerated by a month, making it even more important for tax preparers, such as us, to receive our clients’ year-end books and records as early in January as possible each year. The filing deadline for S corporations has always been March 15^th, so that stays the same. With most partnership returns now being due one month prior to the due date for individual returns, we will hopefully not have to extend as many returns of individuals who are partners in partnerships.
  
  
• In contrast to the change in due dates for partnership returns, calendar-year C corporations will now be required to file by April 15^th, a month later than previously required.  
  
  
• The due date for providing form 1099-MISC to recipients receiving nonemployee compensation and form W-2 to employees remains January 31.  However, the deadline by which businesses must file copies with IRS has also been accelerated to January 31.  Penalties for late filing of 1099s and W-2s are being increased substantially and are now quite severe, so it's more critical than ever to provide us with the necessary information to prepare these as early in January as possible each year, preferably no later than January 15.

Taxpayers with either a financial interest in or signature authority over certain foreign financial accounts are required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts ("FBAR") each year. This form has historically been due by June 30 every year, with no extensions available. Beginning in 2017, the due date for the FBAR will be April 15, with a six month extension available, extending the due date to October 15.

Tax planning is essential to builidng a succesful business foundation and changes in due dates can create confusion and, if not addressed in a timely manner, costly. If you have any questions on the due date changes, tax planning, or compliance, contact us at info@zinnerco.com or  216.831.0733. We are ready to start the conversation.