In January’s Interview, Brent Myers talks about 2017 Tax Information to Know!
Q: What’s new with receiving a 2017 tax refund?
A: Generally, your federal tax refund can be expected approximately 21 days after your tax return has been accepted. However, some federal income tax refunds may be temporarily delayed, particularly those taxpayers claiming the Earned Income Tax Credit and/or Additional Child Tax Credit on the 2016 individual federal income tax return. Refunds from those tax returns may be held until February 15. This gives the IRS time to identify fraudulent tax returns. This is important 2017 Tax Information to Know!
Q: What is the new 2017 tax deadline for 2016 W-2 statements and 2016 1099 forms (including 1099-MISC) to be furnished to recipients?
A: Employers must furnish 2016 W-2 statements to employees by January 31, 2017. This new deadline also applies to copies submitted to the Social Security Administration. Additionally, payers must file all copies of 2016 Form 1099 by January 31, 2017. This is a month earlier than the 2016 tax deadline.
Q: Can taxpayers seek relief from the 60-day rollover requirement?
A: Generally, amounts distributed from a qualified plan or IRA will not be included in income if the amount is transferred to an eligible retirement plan within 60 days. However, a new waiver of the 60-day rollover requirement passed in a revenue procedure in 2016 allowing taxpayers relief from this requirement if due to certain reasons. One of the reasons include financial institution error receiving the contribution or making the distribution.
Q: What are the 2017 tax return filing deadline changes for corporations, partnerships, and foreign information reports (FinCEN 114/FBAR)?
A: C Corporations will have their tax return filing deadline due the same day as individual income tax returns, April 15. This gives C Corporations an extra month for final information gathering and reporting. Calendar year Partnerships now have a March 15 tax return filing deadline, which is one month earlier compared to prior years. Partnerships will need to plan for this new change by determining how the business will file returns and issue Schedule K-1s. Taxpayers holding investments in foreign accounts and the reporting of income earned on those accounts will have until April 15 to file Form FinCEN 114, which differs from the June 30 filing deadline in prior years.
Q: In conclusion, what are some of the prospects for tax reform in 2017?
A: Simplified tax brackets: from seven tiers of tax rates down to just three (12%, 25% and a top rate of 33%)
Elimination of all individual tax deductions except the mortgage deduction and charitable deduction
Combined standard deduction and personal exemption of $15,000 for individuals and $30,000 for married couples
Businesses will pay no more than 15% of their business income in taxes
Elimination of the current estate tax
Brent is the owner of Myers and Company in Sarasota Florida. His public accounting experience in accounting and tax emphasizes his knowledge on individual, corporate, estates and trusts, construction and real estate development and 2017 Tax Information to Know. He can be reached at www.myersandcompanycpa.com
Jean is a certified senior-level human resources executive/consultant, adjunct professor, management trainer, professional speaker, resume writer, career coach, and published author.