Nonprofit Accounting Basics

New Due Dates for Tax Returns Due in 2017

As you may be aware, there have been several changes in due dates for federal tax returns. These changes are generally effective for tax years starting after December 31, 2015 – that is, for 2016 tax returns prepared during the 2017 filing season. These modifications relate mostly to flow-through entities, including partnerships and S corporations that provide Schedule K-1s to their partners and shareholders.

The new due dates will make the K-1s available to the partners and shareholders before their own tax returns are due. In this way, these deadline changes will encourage a more efficient processing of tax returns and will ideally reduce the need for extensions.

Due dates related to individual tax returns and estimated tax payments will remain the same; however, one new date will take effect next year that affects individuals.

We have briefly summarized these deadline changes below. A handy chart with additional details can be found here. 

Partnerships (Form 1065) – The due date is moved from April 15 to March 15, or to the 15th day of the third month after year-end for fiscal year-ends. The extended due date for partnerships remains at September 15, or the 15th day of the ninth month after year-end for fiscal year-ends.

C Corporations (Form 1120) — The due date is moved from March 15 to April 15; in most cases, returns will be due on the 15th day of the fourth month after the year-end. The extended due date for C Corporation tax returns will remain at September 15, until the year 2026, when it will move to October 15.

S Corporations (Form 1120S) – No changes. The due date remains at March 15, allowing for preparation of Schedule K-1s as they relate to individuals and organizations. The extended due date for S Corporations remains at September 15. Note that S Corporations usually have calendar year-ends.

Trusts and Estates (Form 1041) – The initial due date for remains at April 15, or the 15th day of the 4th month after year-end for fiscal year-ends. The extended deadline for these returns will move from October 15 to September 30.

Exempt Organizations (Form 990) – The due date remains at May 15, or the 15th day of the fifth month after year-end for fiscal year-ends. The final extended due date remains at November 15, or the 15th day of the eleventh month after year-end for fiscal year-ends. New for the 990 returns is a single, automatic 6-month extension, thereby eliminating the need to prepare the second 90-day extension.

Foreign Bank and Financial Accounts Report (FBAR) (FinCEN Report 114) — This report is required for individuals and businesses with a financial interest in, or signature authority over, at least one financial account located outside of the United States, and the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year reported. The due date for filing this form is moved from June 30 to April 15; however, now a 6-month extension to October 15 will be available.

Many states are also considering legislation, regulations, or guidance changes to conform state tax return due dates to the new Federal due dates. Some states, including Maryland, have already enacted conformity legislation. Others, including Virginia, already have a state due date of April 15 for corporation tax returns. We can expect to see additional states enacting such changes to their legislation and/or guidance to help taxpayers in the coming months.