Deadlines Extended for Employment Taxes, Benefit Plans, and More
The IRS has postponed deadlines for certain specified time-sensitive actions for certain employment taxes, employee benefit plans, exempt organizations, IRAs, HSAs and Coverdell education savings accounts on account of the Coronavirus pandemic.
Deadlines extended to June 30, 2020
With respect to the remedial amendment period and plan amendment rules for section 403(b) plans, actions that were otherwise required to be performed on or before March 31, 2020, with respect to form defects or plan amendments are postponed to June 30, 2020.
Deadlines extended to July 15, 2020
The following tax deadlines have been extended to July 15, 2020:
- Employers correcting employment tax reporting errors using the interest-free adjustment process.
- Employers correcting employment tax underpayments or overpayments.
- Exempt organizations filing Form 990-N, e-Postcard.
- Exempt organizations commencing a declaratory judgment suit.
- Single employer defined benefit plans applying for a funding waiver.
- Multi-employer defined benefit plans:
- Certifying funded status and giving notice to interested parties of that certification;
- Adopting, and notifying the bargaining parties of the schedules under, a funding improvement or rehabilitation plan; and
- Providing the annual update of a funding improvement plan and its contribution schedules, or rehabilitation plan and its contribution schedules, and filing those updates with their annual return.
- Cooperative and small employer charity (CSEC) plans
- Making contributions required to be made for the plan year;
- Making required quarterly installments;
- Adopting a funding restoration plan; and
- Certifying funded status.
- Employee benefit plans filing Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, and paying the associated excise tax.
In addition, the period beginning on March 30, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest or penalty for failure to file the Form 5330 or to pay the excise tax postponed by the notice. Interest and penalties with respect to such postponed filing and payment obligations will begin to accrue on July 16, 2020.
Deadlines extended to July 31, 2020
Defined benefit plans have until July 31, 2020:
- To adopt a pre-approved defined benefit plan that was approved based on the 2012 Cumulative List;
- To submit a determination letter application under the second six-year remedial amendment cycle; and
- To take actions that are otherwise required to be performed regarding disqualifying provisions in a plan during the remedial amendment period that would otherwise have ended on April 30, 2020.
Deadlines extended to August 31, 2020
The due date for filing and furnishing Form 5498, IRA Contribution Information, Form 5498-ESA, Coverdell ESA Contribution Information, and the Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, is postponed to August 31, 2020.
In addition, the period beginning on the original due date of those forms and ending on August 31, 2020, will be disregarded in the calculation of any penalty for failure to file those forms. Penalties with respect to such a postponed filing will begin to accrue on September 1, 2020.
Waiver of electronic filing requirement
The IRS has also issued a temporary waiver of the requirement that Certified Professional Employer Organizations (CPEOs) file certain employment tax returns, and their accompanying schedules, on magnetic media (including electronic filing). This waiver applies only to Forms 941, Employer’s Quarterly Federal Tax Return, filed for the second, third, and fourth quarter of 2020 and only to Forms 943, Employer’s Annual Federal Tax Return for Agricultural Employees, filed for calendar year 2020, and their accompanying schedules.
CPEOs are permitted, but not required, to file a paper Form 941, and its accompanying schedules, in lieu of electronic submission for the second, third, and fourth quarters of calendar year 2020. In addition, CPEOs are permitted, but not required, to file a paper Form 943, and its accompanying schedules, in lieu of electronic submission for calendar year 2020.
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