IRS Extends Additional Tax Deadlines Related to Employee Benefit Plans

On May 28, 2020, the IRS issued Notice 2020-35, which extends even more tax deadlines due to the COVID-19 emergency. The extensions apply to deadlines falling within the time period starting on March 30, 2020, and ending on July 15, 2020, which the notice calls “the relief period.” The following requirements and related rules are disregarded during the relief period:

  • Funding provisions for defined benefit pension plans. Typically, plans (other than multiemployer plans) must meet minimum funding standards or file a waiver in the event of a temporary substantial business hardship. The waiver application is normally due no later than the 15th day of the third month beginning after the close of the plan year.
  • Form 5330, Return of Excise Taxes Related to Employee Benefit Plans
  • Initial remedial amendment period for Section 403(b) plans. Eligible employers typically have until March 31 to retroactively correct form defects in their written Section 403(b) plan by timely adopting a pre-approved plan or by otherwise amending its individually designed plan.
  • The end of the second six-year remedial amendment cycle for pre-approved defined benefit plans initially was scheduled to end on April 30, 2020.
  • Deadlines for voluntary correction under the Employee Plans Compliance Resolution System (EPCRS). The EPCRS correction programs are available for sponsors of retirement plans (complying with Sections 401(a), 403(a), 403(b), 408(k) or 408(p)) to correct certain failures in order to continue providing employees with tax favored retirement benefits. The EPCRS programs are the Self-Correction Program (SCP), the Voluntary Correction Program (VCP), and the Audit Closing Agreement Program (Audit CAP).
  • 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 are now due August 31, 2020.

Employers should work with their benefit plan providers and tax advisors to understand and comply with the new extensions.

IRS Notice 2020-35 »