Federal Tax Law Changes that will Affect 2016 Federal Returns

Beginning with the 2017 filing season, refunds for tax returns that claim EITC or the Additional Child Tax Credit will be held until February 15. Read more . . .

Earned Income Tax Credit (EITC)

• Taxpayers can no longer file an amended return to claim the EITC for any year a qualifying child did not have a Social Security Number.
• Taxpayers whom the IRS finds have fraudulently claimed the credit can now be barred from claiming EITC for 10 years.
• Read More . . .

Child Tax Credit and American Opportunity Education Credit

• These two credits are now subject to the same due diligence requirements as EITC. This is reflected on the revised 2016 Form 8867 (Preparers Due Diligence Checklist). This also means that the Form 8867 must be attached to tax returns that are claiming the Child Tax Credit and/or the American Opportunity Credit.
• The IRS can bar a taxpayer from claiming the Child Tax Credit and American Opportunity Education Credit for two years if they have determined the individual has intentionally disregarded the rules for claiming either of these two credits.
• Read More . . .

Due Dates for Federal Corporate and Partnership Returns

• C Corporations (Form 1120)
  • Calendar year end - April 15
  • Fiscal year end - 15th day of the fourth month after the year end
• Partnerships (Form 1065)
  • Read More . . .

Click here to read the entire CrossLink Tax Update that includes further information about the changes made to federal tax laws that will affect tax returns for the 2017 filing season.