March 15th is Deadline for Partnerships, S Corps., and Other Tax Matters.

REMINDER: Wednesday, March 15 is the due date for 2016 calendar year partnership returns, and the deadline for several other federal tax related actions, including:

Partnerships and S Corporation Returns: Calendar year partnerships, including electing large partnerships, and S corporations must file their 2016 returns, and provide each partner/shareholder with a copy of Schedule K-1, by March 15, 2017; or file an automatic 6 month extension on Form 7004. S corporations must also pay any tax due with the return by March 15, 2017.

Form 1042-S: A withholding agent must file an information return on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, to report amounts paid to foreign persons that are reportable under Chap. 3 and Chap 4 of Subtitle A of the Code. Form 1042-S, whether filed on paper or electronically, must be filed with the IRS by March 15, 2017. Form 1042-S filers also are required to provide Form 1042-S to the recipient of the income by March 15, 2017. 

Bonus Payments: Accrual basis business can take a 2016 deduction for some bonuses not paid until 2017. An accrual basis business can take a deduction for its current tax year for a bonus not actually paid to its employee until the following year IF: (1) the employee does not own over 50% in value of the business, (2) the bonus is properly accrued on its books for the current tax year, and (3) the bonus is actually paid within the first 2 1/2 months of the following tax year; for a calendar year taxpayer, that means actual payment by March 15, 2017.

Electing S Corp., Status: The S Corp., election is made by the corporation by filing Form 2553, signed by the corporation's authorized office, with the required shareholder consents (and IRS user fee), at the IRS Service Center designated on the form. An S election for a tax year may be made during the preceding tax year, or by the 15th day of the third month of the tax year for which it is to be effective.