Some key tax deadlines and dates have changed, and the changes take effect soon. Here is what you need to know.
April 18 deadline for filing 2016 Form 1040 individual returns
As you know, the usual deadline for filing your annual personal federal income tax return is April 15 of the following year. However, that date is always adjusted for weekends and holidays. So the deadline for your 2016 Form 1040 is April 18, 2017. That date reflects the fact that April 15 and 16 fall on a weekend and April 17 is the Emancipation Day holiday in the District of Columbia. If you can’t file by April 18, you can obtain an automatic six-month extension to Oct. 16 by filing Form 4868 by no later than April 18.
However, you should pay any additional tax that you owe for 2016 with Form 4868 to avoid an interest charge penalty.
Delayed refunds for personal returns claiming certain credits
Due to recent legislation, the IRS cannot issue refunds before Feb. 15, 2017 for personal returns that claim the earned income tax credit or the additional child tax credit. The earned income credit can potentially be claimed by workers with modest incomes. The additional child credit is a refundable credit of up to $ 1,000 per qualifying child that can potentially be claimed if the regular child credit exceeds your federal income tax liability.
The refund delay for a return that claims either of the aforementioned credits affects the entire refund shown on the return — not just the portion of the refund caused by claiming one or both of the credits. Although the IRS will begin releasing refunds for returns claiming the credits on February 15, it is unlikely that the refund will arrive in your bank account or be available on your debit card before the week of Feb. 27, due the time it takes for bank account deposits and debit card credits to roll through the financial system. Note that the Feb. 27 date assumes that your return has no processing issues and you that you choose the direct deposit option or debit card option to receive your refund.
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Small business tax filing alerts
Changes to several tax filing deadlines will affect many small businesses early this year. Here’s the scoop.
Earlier deadlines for Form 1065 partnership and LLC returns
For many years, Form 1065 partnership returns have been due three and a half months after the end of the partnership tax year. Ditto for returns of LLCs that are treated as partnerships for tax purposes. So for a calendar-year partnership or LLC, the filing deadline was April 15 of the following year (adjusted for weekends and holidays). However, recent legislation changed the deal. For partnership and LLC tax years beginning in 2016 and beyond, the Form 1065 due date is moved up by one month, to two and a half months after the close of the tax year. So the deadline for 2016 returns of calendar-year partnerships and LLCs is March 15, 2017. Six-month extensions to September 15, 2017 can be obtained by filing Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns) by the un-extended due date (March 15 for a calendar-year partnership or LLC).
Later deadlines for Form 1120 corporate returns
For many years, Form 1120 C corporation returns have been due two and a half months after the end of the corporation’s tax year. So for a calendar-year corporation, the deadline was March 15 of the following year (adjusted for weekends and holidays). However, recent legislation established new deadlines for corporate returns. For tax years beginning in 2016 and beyond, the Form 1120 due date is generally moved back by a month, to three and a half months after the close of the corporation’s tax year, which translates to April 15 (adjusted for weekends and holidays) for a calendar-year corporation. So the filing deadline for 2016 returns of calendar-year corporations is April 18, 2017. Five-month extensions to September 15, 2017 can be obtained by filing Form 7004 by the un-extended due date (April 18 for a calendar-year corporation).
No change for Form 1120S S corporation returns
The due date for Form 1120S returns of S corporations is unchanged. It is still two and a half months after the close of the tax year. So the deadline for 2016 returns of calendar-year S corporations is March 15, 2017. Six-month extensions to Sept. 15, 2017 can be obtained by filing Form 7004 by the un-extended due date (March 15 for a calendar-year S corporation).
Jan. 31 deadline for reporting compensation paid to workers last year
If your business pays nonemployee compensation aggregating to $ 600 or more to a single payee (payment recipient) in a calendar year, the business must file a Form 1099-MISC to report the payments. Similarly, employers must report wages paid to employees on Form W-2. Previously, these forms were required to be filed with the IRS and Social Security Administration (SSA) by the last day of February or by March 31 if filed electronically. Copies were required to be supplied to payees and employees by January 31 of the following year. Recent legislation moved up the deadline for filing with the IRS and SSA to Jan. 31 of the following year. So the IRS/SSA filing deadline for Forms 1099-MISC and W-2 that show payments made last year is Jan. 31, 2017. This rapidly approaching due date applies whether you submit the forms on paper or electronically.