Federal laws enacted in 2015 dramatically change 2017 tax due dates

2017 tax due dates tightened.

On July 31, 2015, President Obama signed into law legislation tightening 2017 tax due dates of informational forms, filings and extension dates for tax years beginning after December 31, 2015. The “cut in stone” individual April 15 and its October 15 extension due dates were spared. Although the law didn’t specify all forms associated with these returns, they will likely follow suit. To further complicate matters, not all states have yet enacted laws or regulations changing their due dates to conform to the new federal dates.

Circle these new tax season 2017 tax due dates and redline their extensions.

Partnerships: These informational returns filed with the accompanying Schedules K-1 are now due on March 15, a month earlier than previously required. Even with their extension still available until September 15, without the required K-1s by April 15, individual returns can’t be filed timely.

Multiple-member LLCs: These informational returns are also now due on March 15 along with their Schedules K-1, just like partnerships. Extensions remain September 15, and utilization could set in motion the same possible problem of individual return extensions.

C corporation Returns: The C corp has new 2017 tax due dates and deadlines depending on its fiscal (or tax) year:

If fiscal year-end is December 31, the new deadline is April 15. A calendar-year C corp can get an extension until Sept. 15 until tax years beginning after 2025.
If fiscal year-end is other than December 31, the tax return due date is the 15^th day of the 4^th month after year end. June 30 fiscal-year-end returns new due date is Sept. 15 with extensions to April 15 until tax years beginning after 2025.

Estates and Trusts: This new 2017 tax due date is April 15, with extensions until September 30.

Report of Foreign Bank and Financial Accounts (FBAR):

This new due date is April 15 with extension until October 15. The earlier due Schedules K-1 will provide taxpayers all the information needed to complete FBAR filing at the same time as the individual tax return due date and extension.

Organization Exempt from Income Tax: This new due date is May 15 with extensions until November 15, and may eliminate the need to file two extension requests.

Employee Benefit Plans: The new due date is July 31 with the extension due date of October 15 remaining unchanged.

How does this affect the average taxpayer?

Don’t go looking for an average taxpayer this tax season; there are too many variables. Not only have we seen an election creating a major shift in power, but year-end tax legislation is just waiting to happen. There could be a lot up for grabs or clean misses.

Any changes in tax season due dates and deadlines create confusion. The FinCEN reporting of foreign bank and financial accounts now due April 15 indicates heightened interest level. There’s enough confusion in healthcare reporting that the IRS has granted taxpayers a ‘hall pass’ to file their returns without insurance Forms 1095B and 1095C. The list goes on.

What’s the bottom line?

Just because you have a the latest tax computer program, or there’s somebody in a cube at a ‘big box store’ or seasonal tax shop ready to do your returns, you shouldn’t necessarily think it’s the best ‘cut’ for your budget or strategy for your future. You’ll probably be dealing with the IRS for the rest of your life, so don’t just give them the better advantage and more money every year.

We can help. That’s what we do. Contact us.