TAX ALERT: Changes to 2017 Tax Return Deadlines & Mileage Rates

Thanks to a law passed in late 2015, there are some substantial changes to tax return due dates for 2016 returns, filed in 2017, which you may need to know about.  Partnership and most LLC returns will now be due a month earlier than in the past (by March 15th), and returns for calendar-year C corporations will be due a month later (by April 18th).  Forms W-2 and (most) 1099s will be due a month earlier than in the past. 

Additionally, since April 15th falls on a Saturday this year, the due date for any returns due April 15th gets moved to the following Monday, the 17th.  However, the 17th is a holiday in the District of Columbia (where your government resides), so the due date for this year is pushed even further back to Tuesday, April 18, 2017. 

The purpose of these changes was twofold: (a) To get income reports from S corporations, partnerships and LLCs into the hands of their owners earlier to allow those owners to file on time; and (b) To get W-2 and 1099 data to the IRS sooner so they could use this information to combat identity theft on returns filed early in the season.  IRS has announced that the 2017 filing season will start on January 23rd, and that no tax returns will be processed before that date.  Additionally, any refunds due to the Earned Income Credit or Child Tax Credit will not be issued before February 15th, and possibly not until the end of February. 

Here's a table showing all the various due dates for 2017. Do be sure to look it over and don't get caught out if the date for your particular type of return has been changed:

Taxpayer Type Form Number Old Due Date 2017 Due Date
Individuals 1040 April 15 April 18
Partnerships (and most LLCs) 1065 April 15 March 15
S corporations 1120S March 15 March 15
C corporations (calendar year) 1120 March 15 April 18
Trusts 1041 April 15 April 18
Employer W-2 February 28 January 31
Payer 1099 February 28 January 31

Standard Mileage Rates for Business, Medical and Moving Announced

The Internal Revenue Service this week issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
 
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
 
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

If you have questions about these or any other changes to the IRS Tax Code, please don’t hesitate to CONTACT US. We’re here to help!