What’s New For the 2017 Filing Season

Internal Revenue Service federal building Washington DC USA

The IRS will begin accepting tax returns on January 23, 2017 for the tax year 2016.So what changes should taxpayers be aware of this year?

No delays anticipated, IRS commissioner says.

For the first time in several years, the IRS is not anticipating any delays with filing tax returns.

W-2’s have new due date for employers.

Employers now must file W-2s with the Social Security Administration by January 31, the same

date W-2s are due to employees. In the past employers could file W-2s electronically by February 28.

This allowed for changes to be made to W-2s throughout the month of February (such as errors discovered by employees after receiving them) before actually filing them. This will no longer be true.

Expanded W-2 Verification Code program.

The IRS is expanding its W-2 Verification Code program for the coming year, in a continued attempt to combat identity theft and the filing of bogus tax returns.

The program began last year, when the IRS partnered with 4 major payroll service providers to add a 16-digit verification code on Forms W-2. This code was based on a formula devised by the IRS, based on data contained within the Form W-2, so that this verification code was known only to the IRS, the payroll service provider, and the individual whose W-2 was so coded. If tax returns filed with these Forms W-2 did not have this verification code entered in the tax preparation software being used, those returns were immediately flagged by IRS return processors, and rejected. Approximately 1.5 million W-2 forms were involved in the program last year.

This year, the IRS is hoping to expand the program to approximately 50 million Forms W-2, which is about 20% of all W-2s filed. The goal is to have all Forms W-2 covered by this program by 2020.

Change in Tax Return due dates.

If the only tax return you file is your personal 1040, the change in due dates will not affect you.

But, if you file a partnership return, Form 1065, your new due date is March 15, rather than April 15, if you file on a calendar-year basis.

If you file a corporate return, Form 1120, your due date next year is April 15, rather than March 15, if you file on a calendar-year basis.

The filing date for S Corporations, March 15, is unchanged.

Change in Foreign Assets Return due dates.

The due date for filing a FinCEN Report 114 (FBAR) now corresponds to the rules for filing an individual tax return of April 15 with an extension allowed until October 15.

 

Kasperek & Co. Accountants takes pride in keeping the public abreast of relevant tax news.