Earlier in 2017, Congress and President Obama made some significant changes to the due dates for many types of tax returns, geared at easing the administrative burden on taxpayers and tax preparers. Much of the problem had stemmed from the sizable increase in the number of pass-through entities such as partnerships, LLCs, and trusts, all of which had due dates that fell at the same time as the due dates of the ultimate owners, making it extremely difficult in many cases to get the owners tax returns done by the regular April 15th deadline. The changes in the due dates and extension due dates allow taxpayers (and tax preparers) more time to prepare returns that are related to each other. Previously, the problem would stem from a taxpayer waiting on a K-1 that might arrive just before or sometimes even after the due date. The due date changes basically allow for a level of decompression of work over a longer period of time instead of extreme amounts of work in a short period of time.
The changes in due dates are as follows:
Partnership tax returns are now due on March 15th instead of April 15th. Extensions are available until September 15th.
C Corporation returns are now due on April 15th instead of March 15th, with an extension until September 15th available (October 15th after the year 2025).
Trust and estate returns remain with the April 15th due date, however the extension date has been changed from September 15th to September 30th.
Another other significant due date change is for FBAR. FinCEN114 has been moved from June 30th to April 15th to coincide with the due date of the tax return for most taxpayers filing the form. An extension of time is also now available to October 15th , however as of this date FinCEN has yet to actual implement the mechanism for which an extension is requested and granted. Informally, people in the tax community have been told that the individual tax return extension might serve as the FBAR extension, however there has been nothing official, and doesn't help those who don't extend their individual returns, as FBAR has always and will continue to be filed separately from the tax return.
Finally, one last major due date change is for the filing of W-2s. While W-2s have always been required to be provided to employees by January 31st, employers had until February 28th to submit paper reports to Social Security Administration (SSA) or March 31st if they filed electronically. Under the PATH Act passed in 2015 the filing date with SSA has been moved up to January 31st regardless of whether filing on paper or electronically. We strongly suggest that employers take any steps necessary to ensure they will meet this new deadline. Quite honestly, there is little reason to have employees W-2s ready but the W-2/W-3 for SSA not ready at the same time.
As always, should you have questions let us know and we will provide assistance.