Important Changes for the 2017 Tax Filing Season for all Calendar Year Law Firms

The Highway Act legislation gave rise to sweeping changes for the 2017 tax season due dates for filing both original tax returns and extensions. The changes (generally effective for taxable years starting after 12/31/15) that impact calendar year Law Firms are as follows:

Partnerships/LLP’s:

Federal Form 1065 Partnership returns – due MARCH 15th, 2017 (previously April 15th); Extended due date September 15th, 2017 (unchanged),

NY Partnership Returns – due March 15th, 2017 (conforming to federal)

NY LLC Fee – due March 15th, 2017 (previously 60 days after year-end)

NYC Partnership Returns – due March 15th, 2017 (conforming to federal)

C Corporations:

Form 1120 Corporate returns – due APRIL 18th, 2017 (previously March 15th); Extended due date September 15th, 2017 (unchanged) [Note – special rules apply to certain fiscal year filers],

NY Corporate returns – due April 18th, 2017; extended due date October 16th, 2017

NYC Corporate returns – due April 18th, 2017; extended due date October 16th, 2017

S Corporations:

Form 1120S Corporate returns – due March 15th, 2017; Extended due date September 15th, 2017 (both unchanged)

Other Returns:

Forms W-2 and 1099’s – to be filed with the IRS by January 31st, 2017 (previously February 28th)

Foreign Bank Account Reporting (FINCEN 114) must now be filed electronically by April 18th, 2017 (formerly, June 30th) with extensions available to October 16th.

While many states have enacted conformity legislation to parallel the above filing deadlines, e.g. – CA, NYS/NYC, other states, e.g. – CT/NJ have not yet released guidance.

Many firms work feverishly into February and March to finalize pension / profit sharing contributions, partner allocations of income and state and local apportionment information. As such, it is anticipated that many Partnerships / LLC’s that historically filed between March 15th and April 15th will need to file extensions for the 2016 tax returns even if they will get returns, and K-1’s if applicable, submitted by April 18th. For firms filing composite or requiring non-resident withholding in certain states, accurate estimates will still be needed before March 15th in order to file and pay taxes with the extensions.

If you have any questions on the above, please reach out to your Anchin relationship partner, or Russell B. Shinsky or Steven D. Lando at 212.840.3456.

Russell B. Shinsky, CPA, CGMA

Russell Shinsky, CPA, CGMA, is an accounting and audit partner at Anchin and a member of the Firm’s Executive Committee. Russell is the Firm’s audit practice coordinator where he focuses on the efficiency and technical proficiency of Anchin’s attest practice; he provides a range of business and consulting services to law, architectural, and engineering firms. Russell also services clients within the following industries: construction, retail, food, apparel & textile, compensation and benefits, and manufacturing and distribution.

As chair of the Firm’s Law Firms Industry Group, Russell is thoroughly familiar with the accounting, audit and tax requirements of law firms. He has been instrumental in consulting with these clients on operational aspects of their business as well as in due diligence for mergers and acquisitions. Russell also works within auditing and consulting on benefit plan matters for legal and other professional service organizations.

Russell frequently lectures to law firms and their attorneys. He is a member of the American Institute of Certified Public Accountants (AICPA) and the New York State Society of Certified Public Accountants (NYSSCPA).

Steven Lando, CPA

Steven Lando, CPA, is a partner at Anchin and the Tax Partner-in-Charge of Anchin’s Law Firms Industry Group. Steven’s expertise is in the area of tax planning and compliance, specializing in income and estate tax planning, wealth preservation, and compliance for federal, international, state and local taxes. His practice consists of law firms and attorneys, high net worth families, and a diverse group of business enterprises including hedge funds, acquisition companies, technology businesses, real estate owners and developers throughout the United States and in other various countries.

Steven has consulted with numerous groups and law firms on minimizing tax consequences of converting from a PC to an LLP, on establishing sophisticated pension plans to maximize owner contributions without undue burden on the business, on mergers & acquisitions, and on tax planning for investment decisions.

Steven has lectured to members of banks, law firms, real estate companies and most recently presented on “The State of State and Local Taxation and How it Impacts Your Law Firm” to the ALA. He has written for publications such as the New York Law Journal and Law Office Administrator. He has served on the State and Local, and Interstate Taxation Committees of the New York State Society of Certified Public Accountants (NYSSCPA) for a number of years.