On April 9, 2020, the Internal Revenue Service (IRS) extended key tax deadlines for individuals and businesses in response to the ongoing COVID-19 pandemic. The new tax relief gives the IRS authority to postpone deadlines for taxpayers affected by federally declared disasters.
Form 5500 – Automatic Deadline Extension
Notice 2020-23 postponed the Form 5500 filing deadline for ERISA-covered retirement and welfare plans that have an original or extended filing deadline on or after April 1, 2020, and before July 15, 2020. These plans have until July 15, 2020 to file their Forms 5500.
The extended deadline is automatic, meaning that plan sponsors do not have to call the IRS, file any extension forms, or send letters and other documents to receive relief. Additional filing extensions must be requested by using the appropriate extension form by July 15, 2020, but the extension may not go beyond the original or regulatory extension date.
Keep in mind, the notice does not extend the filing deadline for 2019 Form 5500 filings for calendar year plans, which are due on July 15, 2020.
Therefore, employers will want to consult with their tax advisors to determine if upcoming tax or payment deadlines have been postponed. Those with calendar year plans will need to be prepared to file their Forms 5500 by July 15, 2020 or request an extension.
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For any questions regarding these details, reach out to the Creative Benefits Team at firstname.lastname@example.org or 866-306-0200.