As if US taxes are not confusing enough, the government enacted a law in 2015 that changes some 2017 tax deadlines, which are for 2016 calendar year tax returns. These new dates will streamline the 2017 filing season and beyond.
Let’s have a look at who will be impacted by these tax date changes.
No changes for individual tax returns
Individual tax returns are still due on April tax day, which falls on April 18 for 2017. Expats receive an automatic extension of 2 months to June 15. If you file for an extension, your deadline will be October 16, 2017.
Under a new law, any refunds that include the Earned Income Tax Credit or the Additional Child Tax Credit must be deferred by the IRS until at least mid-February. So if you are claiming any of those two tax credits, expect to wait a little longer for your tax refund, even if you file as soon as tax season opens on January 23.
Important deadline change for reporting foreign bank accounts
Previously, Foreign Bank Account Reports (FBAR, FinCen Form 114) were due on June 30. But starting in 2017 for the 2016 tax year, FBARs must be filed on April 18, 2017.
Another change for reporting foreign bank accounts is that for the first time you can file for an extension. The extended deadline is October 16, 2017.
Tax deadlines for corporations are changed around
Previously, all corporate income tax returns (Forms 1120 and 1120-S) had the same tax deadlines. For corporations on a calendar year, the first deadline was March 15 and the extended deadline September 15.
Starting 2017, C-Corporations (Form 1120) and S-Corporations (Form 1120S) have different tax due dates.
S-Corporations see no changes
S-Corp returns remain to be due on March 15, with an extended deadline to September 15, 2017.
C-Corporations get one extra month
The deadline for C-Corp returns however has been moved to April 18, 2017 for corporations on a calendar year. The extended deadline now is October 16, 2017.
For corporations on a fiscal year other than the calendar year, the new due date is the 15th day of the fourth month following the close of the corporation’s year.
There are some exceptions and additional details that we are happy to discuss with you.
Due date for Partnership returns now one month earlier
Previously, partnership returns (form 1065) were due on April tax day, which was April 18 for 2016. Starting 2017, the new due date is March 15, 2017 for calendar year partnerships and the 15th day of the third month after the close of the fiscal year for fiscal year partnerships. This is one month earlier than before. The extended deadline remains at September 15 for 2017.
With this change, tax returns for partnerships and S corporations, which are both flow through entities, are due March 15. This gives the individual owners of those entities one month to use the tax information from the entity filing for their individual income tax returns.
Small change for trust returns extensions
Trust and estate income tax returns (Form 1041) are still due on April tax day, which is April 18, 2017. However, the extended deadline has been extended for an extra half month to October 2, 2017.
State tax deadlines may change as well
Many states enacted or are considering changes to their tax due dates to conform with the new federal tax deadlines.
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