The IRS officially announced that tax season will begin on January 23rd when it starts accepting returns. You will have a few extra days to get your returned filed with a due date of Tuesday, April 17 in 2017.
But for those with offshore accounts and those who file a partnership return there are notable deadline changes. In this post, we explain the changes so you can avoid late filing penalties.
FBARs filed with tax returns
For those with foreign accounts, Form 8938 has generally been filed with a tax return and is due with by the April filing deadline. Generally, this form is required for accounts with assets of $50,000 for individual taxpayers or $100,000 for married couples filing jointly.
The change in deadline applies to the broader Report of Foreign Bank and Financial Accounts (FBAR now known as FinCEN Report 114). You must file this disclosure when the aggregate of all financial accounts is $10,000 or more during the year. In the past, you need to use the BSA e-filing system and submit the form prior to June 30.
In 2017, this deadline moves to the April filing deadline. This may be part of a wider effort to increase compliance. Penalties start at $10,000 for non-willful failure to file. When evidence suggests a willful failure, they can go up to $100,000 or 50 percent of account balances.
Partnership tax filings
An important change for partnerships filings is that the deadline will moves up from April 15 to March 15. Extensions to September 15 can be requested.
Pay close attention or you could face a late filing penalty of $195 per partner each month the filing is late.
If you haven’t yet filed a FBAR or partnership tax filing in 2016, now is the time to deal with the issue before you miss two years. A tax attorney can help you mitigate the consequences of a late filing and advise on next steps.