Now that year-end planning and execution is behind us, it’s time to perform year-end closing procedures and reconciliations of banks, credit cards, fixed assets, etc. This year, the IRS has made several due date changes that you need to be aware of to make sure you are in compliance.
January 31st – 1099s/year-end payroll filings. These informational return yearly filings have historically been due to recipients by January 31st, and if you electronically filed these forms, you had until March 31st to submit to the IRS. This year, however, the filings are due to both the recipients and the IRS by January 31st, regardless of filing electronically. The main reason for this is to allow the IRS to receive the information earlier and hopefully lower the number of fraudulent returns filed through matching.
March 15th – Historically, C Corporations and S Corporation tax returns were due on this date. Beginning January 1, 2017, S Corporation and Partnership tax returns are due March 15th. So, all flow-through tax returns are due by March 15th, one month before the individual filing due date and more time to receive the necessary K-1s to file individual tax returns.
April 15th – Historically, Partnerships and Individual tax returns were due on this date. Beginning January 1, 2017, C Corporation and Individual tax returns are due April 15th. As mentioned above, moving the flow-through tax return due dates up to March 15th should allow more time for individuals to file their tax returns since they will be receiving K-1s early, and since C Corporation returns do not affect individuals, they are now due April 15th.
If you file a partnership tax return, you should begin planning for this due date change now in order to gather all documents in advance of March 15th, or be prepared to file an extension. And while generally, no federal tax is due with partnership tax returns since they are flow-through, most companies wait to pay their employer retirement match until the due date of the tax return, so that would now be due one month earlier. This could create a cash flow issue if it is not planned for.
Contact an Anders advisor now to start working on what you need to do to get your returns filed so you can move on to tackling current year planning.All Insights