PRACTICE AND PROCEDURE: NEW STATE BUSINESS INCOME TAX DUE DATES IN EFFECT FOR THE 2017 FILING SEASON

As the end of the tax year approaches for calendar year filers, businesses and tax professionals are preparing for the first income tax filing season in which due date changes enacted in the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 are in effect.

In 2015, Congress passed the amending legislation and the President signed it into law; however, most of the due date changes were deferred until the 2017 filing season.  

For tax years that began on and after Jan. 1, 2016, federal corporation returns – Form 1120 – are due on April 15, or the next business day, for calendar year filers. For fiscal year filers, the returns are due on the 15th day of the fourth month after the close of the tax year. However, the new due date will not apply to C corporations with a fiscal year ending on June 30 until 2026.

For tax years that began on and after Jan. 1, 2016, federal partnership returns – Form 1065 – are due on March 15, or the next business day, for calendar year filers. Fiscal year taxpayers must file partnership returns by the 15th day of the third month after the close of the tax year.

The due date for federal S corporation returns was not changed by the legislation and remains the 15th day of the third month after the close of the tax year, which is March 15 for calendar year filers.

To maintain conformity with federal filing provisions, many states, along with the District of Columbia and New York City, have made corresponding changes to their business income tax filing due dates. The chart below summarizes these changes by jurisdiction:

Business Income Tax Filing Due Dates by Jurisdiction

Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: Will the new income tax filing dates result in a rocky 2016 filing season for businesses, practitioners and government?

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