The 2016 tax season brings new due dates that will impact nearly all filers, mainly because of changes related to legislation Congress passed.
The due date changes with the most impact will likely be those changes for Partnership tax returns (Form 1065) and C Corporation tax returns (Form 1120). Essentially the due dates have swapped, with Partnership returns due March 15th and C Corporation returns due April 18th. The significant reorganization of due dates is intended to assist individuals involved in pass-through entities in receiving information required to prepare their individual returns in a timelier fashion.
Also, new for tax year 2016 (reporting in 2017), the foreign bank reporting on FinCEN 114 (FBAR) is due on the same date as the individual tax return, Form 1040, and is eligible to be extended to the individual extended deadline, October 16th.
Below is a list of the new federal due dates generally applicable for 2016 tax returns (2017 filing season) and beyond:
March 15 (Extensions Until Sept. 15)
Form 1065, U.S. Return of Partnership Income; and
Form 1120S, U.S. Income Tax Return for an S Corporation.
Note: This is the due date for the tax return and also for the Schedules K-1 that the entity must provide to its owners.
April 15 (Extensions Until Oct. 15, Unless Noted Below)
Form 1040, U.S. Individual Income Tax Return;
Form 1041, U.S. Income Tax Return for Estates and Trusts (extensions until Sept. 30);
Form 1120, U.S. Corporation Income Tax Return (extensions until Sept. 15); and
FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (any late filing penalty for a first-time filer may be waived).
May 15 (Extensions Until Nov. 15)
Form 990, Return of Organization Exempt From Income Tax (series).
July 31 (Extensions Until Oct. 15)
Form 5500 for employee benefit plans.
While the most dramatic changes are detailed above, several other due date changes go into effect with 2016 tax year filings due in 2017, mostly related to extended due dates:
Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code – The extension period is changed from three months to six months.
Form 5227, Split-Interest Trust Information Return – the extension period is changed from three months to six months.
Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction – the extension period is changed from three months to six months.
Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts – the extension period is changed from three months to six months.
Expanded Form 1098 Mortgage Interest Reporting, In addition to the previous information that is required to be included on Form 1098, effective for returns required after December 31, 2016, the following additional information needs to be furnished to a payor with respect to a debt secured by real property:
- The amount of outstanding principal on the mortgage as of the beginning of the taxable year;
- The loan origination date;
- The address (or other description in cases where no address exists) of the property securing the mortgage.
The purpose of these additional reporting requirements is to allow the IRS to better determine whether the amount of interest claimed by individual taxpayers is in excess of the dollar limits applicable to acquisition or home equity indebtedness.