The original and/or extended federal due date of many common income tax and information reporting forms will change beginning in 2017 (for tax year 2016 filings). These changes impact all taxpayers that issue Forms W-2 or 1099-MISC, taxpayers with foreign bank accounts, and taxpayers organized as subchapter C corporations, partnerships (including limited liability companies taxed as partnerships), trusts and not-for-profit entities. Taxpayers should discuss these changes with their tax return preparers to re-assess timing strategies concerning the submission of financial and reporting data and ensure the continued timely filing of tax and information returns.

The income tax return and foreign bank account reporting due date changes were instituted as part of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (2015 Highway Funding Act), to accommodate changes suggested by the American Institute of Certified Public Accountants (AICPA). The AICPA’s primary goal in requesting these changes was to correct the mismatch of information flow resulting when the tax returns for certain pass-through entities were due at the same time as the tax returns of their owners. Other due date changes that impact information reporting forms were included in the Protecting Americans from Tax Hikes Act (PATH Act), in an attempt to reduce fraudulent tax refund claims. All of the due date changes are detailed below, and a summary chart is included at the end of this article.

Form W-2 and Form 1099-MISC – Government Copy Now Due January 31

Taxpayers are required to issue Form W-2 to their employees and Form 1099-MISC to their independent contractors by January 31 of the following year. The copies filed with the federal government, however, historically were not due until February 28 or March 31 if filing electronically. Beginning with statements filed in 2017 (for the 2016 calendar year), the government copies of these forms also must be filed by January 31.

Foreign Bank Account Reporting – Now Due April 15; Six-month Extension Available

FinCEN Form 114, the foreign bank and financial accounts report (FBAR), historically was due on June 30 following the end of the calendar year with no possibility for extension. To more closely align the FBAR due date with those of the income tax returns for the related taxpayers, the 2015 Highway Funding Act accelerates the FBAR’s original due date to April 15, but now provides for a six-month extension until October 15 if the 1040 is extended.

Partnership Form 1065 – Calendar Year Due Date Accelerated to March 15

Prior to the 2016 tax year  filings due in 2017, Form 1065 for partnerships (and limited liability companies taxed as partnerships) was due 3 ½ months after the end of the fiscal year or April 15 for the vast majority of partnerships (that utilize a calendar year-end). For tax years beginning after December 31, 2015, the 2015 Highway Funding Act accelerates Form 1065’s original due date to March 15 for calendar year-end partnerships. Similarly, the due date for fiscal year-end partnerships has changed to 2 ½ months after year-end.

The extension period for Form 1065 has increased from five months to six months, meaning that the extended due date for Form 1065 has not changed. Hence, the extended due date for calendar year-end partnerships continues to be September 15.

Several states also have accelerated the original due dates of their state partnership income tax forms as a result of the federal changes, including, but not limited to: Arizona, California, Georgia, Louisiana, Mississippi, Nebraska, New Hampshire, New Mexico, New York, Oregon, Rhode Island, South Carolina, Vermont and West Virginia.

C Corporation Form 1120 – Calendar Year Due April 15; Extended and Fiscal Year-End Dates Complicated

For tax years beginning after December 31, 2015, Form 1120 for a calendar year-end C corporation is now due April 15, instead of March 15 as in prior years. The due date for Form 1120S for subchapter S corporations has not changed and is still March 15 for calendar year-end filers. Although this change is relatively simple for calendar year-end C corporations, a determination of the appropriate due date for fiscal year-end C corporations, or C corporations on extension, requires more careful study.

The concept was simple enough – change the original due date for Form 1120 to 3 ½ months after year-end with a six-month extension (April 15 and October 15, respectively, for calendar year-end filers). But, because the federal government utilizes a fiscal year ending September 30, a full and immediate implementation of these changes would have deferred significant tax receipts outside of the 10-year federal budget window. In turn, this would have made the provision too expensive under the federal government’s “PAYGO” rules. Therefore, the timing of certain changes to C corporation filing dates has been deferred for 10 years, depending on the C corporation’s year-end:

• Calendar year-end – The original due date is April 15, but the extension period is only five months (until September 15), for tax years beginning after December 31, 2015. For tax years beginning after December 31, 2025, the extension period changes to six months (until October 15).
• June 30 year-end – The original due date remains September 15 (2-½ months after year-end), but the extension period is changed to seven months (until April 15), for tax years ending before January 1, 2026. For tax years beginning after December 31, 2025, the original due date will change to October 15 (3-½ months after year-end), and the extension period will change to six months (still until April 15).
• Fiscal year-end other than June 30 – The original due date is changed immediately to 3 ½ months after year end with a six-month extension period, for tax years beginning after December 31, 2015.

Many states have had to pass law changes conforming their corporate return due dates to the new federal date, lest the situation arise where the state tax return was actually due before the federal return. As of this publication date, four states still have original due dates for their C corporation tax returns that are prior to the April 15 due date for the federal Form 1120 – Arkansas, Delaware, Massachusetts and Wisconsin. Presumably, these states will ultimately take action to conform their due dates to the federal date, but because those actions typically require the passage of state legislation, nothing is guaranteed.

Other Changes

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 1041 for trusts and estates – The extension period is changed from 5 months to 5 ½ months (September 15 to September 30 for calendar year-end filers)
• Form 990 series for exempt organizations – The two separate three-month extension periods have been replaced by a single six-month extension period
• 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

For more information about these due date changes and how they could impact your information gathering process, contact your local CBIZ MHM tax professional.

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