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ML BeneBits

The IRS has again extended the due dates for certain returns and payments because of the ongoing coronavirus (COVID-19) pandemic. Notice 2020-35, which the IRS issued on May 28, 2020, postpones the due date for certain time-sensitive actions related to qualified retirement plans, health savings accounts and Archer medical savings accounts, and employment taxes. With some exceptions, which are noted below, affected filings are due July 15, 2020.

Extensions

Notice 2020-35 amplifies Notices 2020-18, 2020-20, and 2020-23 that postponed the due date for various tax returns and payments to July 15, 2020. The extensions provided in this most recent IRS notice apply to certain time-sensitive actions that would have been due on or after March 30, 2020 (and April 1, 2020 in some cases) and before July 15, 2020.

The following is a nonexhaustive list of affected filings (including any schedules or attachments) and corresponding payments that have extended deadlines.

Employee Benefit Plans and Arrangements

  • Applications for funding waivers for single-employer defined benefit plans under Internal Revenue Code Section 412(c) that would have been due as of an earlier date are now due July 15, 2020.
  • For multiemployer plans, certifications of funded status, adoption and notification of funding improvement or rehabilitation plans, and related updates and filings have been extended to July 15, 2020.
  • The deadline to adopt a preapproved defined benefit plan or submit a preapproved defined benefit plan for determination letter is extended to July 31, 2020. In addition, preapproved defined benefit plans that need to correct a disqualifying provision during the remedial amendment period ending on April 30, 2020 have until July 31, 2020 to make such corrections.
  • No interest or penalties for excise taxes reported on Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans) will apply for the period March 30, 2020 through July 15, 2020.
  • The previously announced extension of the remedial amendment period for 403(b) plans to June 30, 2020 has been formally recognized and confirmed.
  • Plan sponsors have until July 15, 2020 to take corrective actions required by a voluntary compliance statement issued pursuant to the IRS’s Employee Plans Compliance Resolution System.
  • Custodians of health savings accounts, Archer medical savings accounts (MSAs), or Medicare Advantage MSAs have until August 31, 2020 to file Form 5498-SA. The deadline for filing Form 5498 for IRA contributions is also postponed to August 31, 2020. Penalties for postponed filings that are not filed by the extended deadline will begin to accrue on September 1.

Employment Taxes

The correction of employment tax reporting errors using the interest-free adjustment process is available through July 15, 2020 for overpayments or underpayments otherwise due to be corrected between March 30, 2020 and July 15, 2020.