Changes Affecting the 2017 Tax Season
Thursday, November 10, 2016

By the end of this year it is unlikely that there will be any last minute tax legislation changes or additions. However, there are significant federal income tax changes that took effect this year as a result of prior year tax legislation. As you are preparing for tax season, you'll want to keep a number of these changes in mind. There are two major changes in the 2017 tax season: client tax forms that will be received in the 2017 and tax season due date changes. 

New Information You Will be Receiving:

Form 1098 Mortgage Interest Statement (beginning with 2016 reports):

Form 1098 (the form that reports your home mortgage interest deduction) will start reporting (1) outstanding mortgage principal as of the beginning of the calendar year, (2) the mortgage origination date, and (3) the address (or description) of the property that secures the mortgage. This new information will help the IRS determine if the mortgage interest meets all the requirements to be deductible. 

Form 1098-T Tuition Statement: (beginning with 2016 Form 1040):

Form 1098-T is sent by educational institutions to both students and the IRS. It shows the amount paid by or billed to a student for qualified tuition and related fees for the year. Starting in the 2016 tax year, students or their parents must receive a Form 1098-T and provide it to our firm from educational institutions as a condition for claiming the American opportunity tax credit, the lifetime learning credit, and above the line deduction for qualified tuition and fees. 

Due Date Changes Summary: 

There are a number of due date changes on various tax forms you may be required to file.  Please see below for the changes.

Return Type / Form:

Due Date:

Form W-2 and Form 1099-MISC

January 31st

Form 1065 (U.S. Return of Partnership Income)

March 15th for calendar-year partnerships

Form 1120 (U.S. Corporation Income Tax Return)

April 15th for calendar-year corporations

FinCen Form 114 (FBAR)

April 15th

Service Highlight of the Month

Did you know that our firm can help you determine your 2017 tax liability, as well as possibly reduce it, by performing an income tax projection? The Internal Revenue Code is complex, but oftentimes it contains many opportunities to reduce taxable income. Through careful tax planning before year-end and performing tax projections, we can help you to estimate your tax liability long before your taxes are filed. This greatly reduces the stress of receiving an unexpectedly large bill and can give you peace of mind that you are informed and prepared as the year comes to a close.

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Around the Office Updates

We are proud to announce that shareholder Toby Clary has been honored as a recipient of BizWest's Northern Colorado 40 under Forty award! This esteemed award recognizes emerging young professionals in the Northern Colorado community for the difference they make in their companies, industries, and community's future.  In addition to this award, Toby was recognized as the sole 2016 Community Service Award recipient for his incredible involvement in volunteer organizations throughout the community including Northern Colorado United for Youth, Colorado Society of CPAs, Partners Mentoring Youth and the COCPA Education Foundation. Congratulations Toby!

We hope this brief overview helps you understand some of the income tax changes for for the 2017 tax season. If you have any questions regarding the above changes, please do not hesitate to give us a call.

Thank you,