With tax season hitting full swing and filing deadlines approaching, clients are becoming frantic as they rush to get everything done in time. Advisors need to be the calm in this storm, and the best way to do so is to be prepared. Here are seven important 2016 tax dates that advisors should know:
Feb. 29, 2016
Cutting this one just a little close, but there’s still time to pull everything together.
All Businesses: File information returns (for example, Forms 1099) for certain payments made in 2015. Note that there are different forms for different types of payments. Use a separate Form 1096 (Annual Summary and Transmittal of U.S. Information Returns) to summarize and transmit the forms for each type of payment.
Farmers and Fishermen: File 2015 income tax return (Form 1040) and pay any tax due.
March 15, 2016
Corporations: File a 2015 income tax return (Form 1120) and pay any tax due.
S Corporations: File a 2015 income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Shareholder’s Share of Income, Deductions, Credits, etc.) of Form 1120S or a substitute of Schedule K-1.
S Corporation Election: File Form 2553 (Election by a Small Business Corporation) to elect to be treated as an S corporation beginning with calendar year 2016. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2017.
Electing Large Partnerships: Provide each partner with a copy of Schedule K-1 (Partner’s Share of Income/Loss from an Electing Large Partnership) of Form 1065-B or a substitute of Schedule K-1. This due date applies even if the partnership requests an extension of time to file.
April 18, 2016
Not a typo. The IRS threw us a bit of a curveball this year because the D.C.-only federal holiday Emancipation Day happens to fall on April 15, so the most well-known tax season deadline has been pushed back.
All personal, partnership and estate/trust tax returns or extensions must be filed (or postmarked) by this date as well.
Additionally, clients with income that isn’t subject to withholding must either pay the full amount of their 2016 estimated tax by this deadline or opt into the “quarterly” payment plan and make their first payment of 25 percent of that amount.
June 15, 2016
This is the deadline for all U.S. citizens or resident aliens living and working (or on military duty) abroad (aka outside the U.S. and Puerto Rico) to file their 2015 income tax returns (Form 1040) and pay any taxes due.
The second installment of “quarterly” 2016 estimated tax payments is also due.
Sept. 15, 2016
This is the final deadline to file a return for all C-corporation, S-corporation, partnership or estate/trust clients that filed for extensions.
The third installment of any 2016 estimated tax payments is also due.
Oct. 17, 2016
The last chance to file a 2015 return for all individuals (and electing large partnerships) who filed for 6-month extensions.
Jan. 15, 2017
Next year already? This is the due date for the fourth and final installment of “quarterly” 2016 estimated tax payments.
By keeping abreast of these important deadlines, advisors can not only stay organized, but are afforded the time to think outside the box and attempt to add value by bringing a uniquely customized tax savings plan to the table when they do sit down with clients.
For a more in-depth look at exactly what is due when, refer to the official 2016 Federal Tax Calendar.