(updated 2/8/2017)

2017 Tax Season Highlights:


IRS to Delay Tax Refunds Involving EITC and ACTC in 2017

Section 201 of the Protecting Americans from Tax Hikes Act of 2015, or PATH Act, which was enacted Dec. 18, 2015 mandates that no credit or refund for an overpayment for a taxable year shall be made to a taxpayer before Feb. 15 if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return.  This Section will be implemented by the IRS for the 2017 tax season.  According to "Accounting Today" magazine:

"The change begins Jan. 1, 2017 and may affect some returns filed early in 2017. To comply with the law, the IRS said it will hold the refunds on EITC and ACTC-related returns until Feb. 15. This allows additional time to help prevent revenue lost due to identity theft and refund fraud related to fabricated wages and withholdings. The IRS plans to hold the entire refund until that time. Under the new law, the IRS cannot release the part of the refund that is not associated with the EITC and ACTC. The IRS advised taxpayers to file as they normally do, and tax return preparers should also submit returns as they normally do. The IRS will begin accepting and processing tax returns once the filing season begins, as we do every year. That will not change. The IRS still expects to issue most refunds in less than 21 days, though IRS will hold refunds for EITC and ACTC-related tax returns filed early in 2017 until Feb. 15 and then begin issuing them."

Due Date Changes for C Corporations & Partnerships

H.R. 3236 was signed into law on 7/31/2015, modifying the due dates for the annual tax returns for Partnerships & C Corporations in order to make the information flow among the various returns more logical.

For tax years beginning after 12/31/2015, Partnerships will be due on the 15th day of the 3rd month (or March 15 for calendar years).  Likewise, C Corporations will be due on the 15th day of the 4th month (or April 15 for calendar years).  Both will have maximum 6-month extensions available.

Exceptions to C Corps:
  • Calendar year C Corps will only have 5 month extensions available until tax years beginning after 12/31/2025. (Revised 2/8/2017 by the IRS: Calendar Year C Corps allowed 6 month extension)
  • C Corps with 6/30 year-ends will have 7 month extensions available until tax years beginning after 12/31/2025.
  • These new due dates do not apply to C-Corps with 6/30 year-ends until tax years beginning after 12/31/2025.


Tax Extenders Bill Passed by Congress:

On 12/15/15, Congress made certain credits permanent and extended others for 2 or 5 years.  The following were made permanent:
  • Enhanced child tax credit 
  • Enhanced American opportunity tax credit
  • Enhanced earned income tax credit
  • Deduction for certain expenses of elementary & secondary school teachers
  • Deduction of State and local general sales taxes
  • Increased expensing limitations and treatment of certain real property as section 179 property
The following were extended through 2019:
  • Work opportunity tax credit
  • Bonus depreciation 
The following were extended through 2016 (unless Congress acts to extend these further, these will not be available for 2017 or future tax years):
  • Exclusion from gross income of discharge of qualified principal residence indebtedness
  • Mortgage insurance premiums treated as qualified residence interest
  • Above-the-line deduction for qualified tuition and related expenses