Rules Change About When Some Tax Documents Are Due
By Christine Hall
For tax years beginning after 2015, there are revisions for the initial due dates and/or extended due dates for various tax returns that affect small businesses. Since these new due date provisions are effective for tax years beginning after 2015, the new deadlines will first apply to 2016 which are due in 2017.
It is important that you keep these changes close at hand because failure to file the returns in a timely manner will result in late filing penalties.
The following list includes some of the more common returns and their new due dates:
Partnership Returns (Form 1065). The initial due date for a Partnership Return (Form 1065) will be the 15th day of the third month following year-end. For example, a calendar-year partnership will have a due date of March 15 of the following year. Previously, partnership returns were due the 15th day following the fourth month (i.e., April 15). The extension due date for partnership returns will not change; it will continue to be September 15.
C Corporation Returns (Form 1120). The initial due date for a calendar-year C corporation return will be April 15 of the following year and the extended due date will remain unchanged and will be September 15. The prior initial due date for Form 1120 was March 15 of the following year.
W-2s and 1099s. In order to cut down on identity theft, for information returns filed after 2016 (2016 forms filed in 2017), the new due date for W-2 and 1099-Misc forms that are to be filed with the Social Security Administration is January 31. This is the same due date the forms are to be filed with the recipient of the compensation. Previously, the due date for these returns with the Social Security Administration was the last day of February.
Failure to timely file information returns has also become more costly. Effective for returns required to be filed after 2015, the new laws increase the failure to file penalty from $100 to $260 per return. This penalty is applied to both the payee and the IRS. Therefore, failure to file a 2016 Form 1099 required to be filed in 2017 with both the payee and the IRS would trigger a total penalty of $520.
The act changes the due dates and/or extended due dates for several other tax forms not mentioned in this article. Be sure to ask your tax preparer about the new due dates and their impact because the changes could apply to you.
Hall, Murphy & Schuyler, PC is a full-service public accounting firm. They have a staff of experienced professionals that stand ready to meet all of your accounting, tax and general business needs. For a complimentary consultation, call 706-855-7733 or email at cmh@HMandScpas.com