The 2017 tax filing season begins January 23, the first date on which the Internal Revenue Service will accept electronic returns. This year, there are some changes of which employers and employees should be aware.

The deadline to submit federal returns—and Colorado state tax returns—is Tuesday, April 18, since the usual April 15^th deadline falls on a Saturday this year and because Monday, April 17 is a legal holiday in Washington, DC.

Expect refund delays
A new law requires the IRS to hold refunds that include claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15. In addition, the IRS wants taxpayers to be aware it will take several days for these refunds to be released and processed through financial institutions. Factoring in weekends and the President’s Day holiday, the IRS cautions that many affected taxpayers may not have actual access to their refunds until the week of Feb. 27.

This delay, along with resource limitations at the IRS, could mean that taxpayers may wait longer than expected to receive their refunds.

Changes that affect employers
The Protecting Americans from Tax Hikes (PATH) Act, enacted last December, also includes a new accelerated deadline for employer to file Forms W-2 and certain Forms 1099-MISC. They are now required to file copies (on paper or electronically) to the Social Security Administration (SSA) by January 31.

The new January 31 filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors (Box 7 on the form). If you do not use Box 7 on the 1099-MISC, the deadlines remain unchanged—January 31 for employees, February 28 for paper filing to the IRS, and March 31 for electronic filing to the IRS.

Penalties for not complying with the new W-2 deadline are increased. This has raised concern, since the deadline to furnish the form to the employee is the same as the deadline to submit to SSA. This does not allow time for corrections before submitting to SSA. There are safe harbor provisions for de minimis dollar amount errors. If one or more dollar amounts are incorrect, no correction of the dollar amount is required, and the return shall be treated as having been filed or the payee statement furnished, as correct, provided that:

• The difference between the dollar amount reported on the filed return or furnished payee statement, and the correct amount is no more than $100; and
• The difference between the dollar amount reported for tax withheld, on the filed return or furnished payee statement, and the correct amount is no more than $25.

For complete details, visit www.irs.gov/instructions/i1099gi/ar02.html#d0e2122.

Additionally, the PATH Act retroactively extended the Work Opportunity Tax Credit (WOTC) for nine categories of workers hired on or after Jan. 1, 2015. It also added a tenth category for long-term unemployment recipients hired on or after Jan. 1, 2016. WOTC is a credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. Learn more at www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit-1.

Also of interest to small business and self-employed individuals: all employment tax due dates can be found at www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates.

Read more in this issue of Colorado Green NOW:
Perennial trials offer new ideas for hardy landscapes
ProGreen EXPO keynote presents "The Spark, the Flame and the Torch"
Making and keeping resolutions for your business in 2017
How are you dealing with dust in Fort Collins?