2016 S Corp and Partnership Returns: Deadline Quickly Approaches

Taxpayers who pushed off their 2016 returns last spring by filing 6-month extensions now are getting close to the day of tax reckoning. The deadline for completing those extended tax returns looms within six weeks for individuals.

Actually, partnerships and S corporations need to hustle now. Their extensions expire on Sept.15, a month earlier than in the past. The partnership deadline previously had followed the schedule for Form 1040 filed by individuals — April 15 (original deadline) and Oct. 15 (with an extension).

The new due date was set by Congress in a 2015 law. It moved up the original filing date for 2016 returns to March 15.   The change caused enough consternation that the Internal Revenue Service waived penalties for late filings if a partnership had met this year’s original deadline on April 18. (See IRS Notice 2017-47 for more details.) But the IRS has not bent its rules for the upcoming due date for extended returns on Sept. 15.

Individual taxpayers who received extensions last spring can be a little more leisurely. They have until Oct. 16 to finish up their 2016 returns. (The normal due date, Oct. 15, lands on a Sunday, moving the deadline back to the next business day under IRS rules.)

EricJohn Ltd. is ready to assist with the IRS and Minnesota state tax calendars, as well as extended filings. It’s also a good idea to start thinking about end-of-year tax actions for 2017’s returns.