IRS Extends Some Form 5500 Filing Deadlines

By: Kiowa Speck, AIF®, PPC®

On April 9, 2020, the Internal Revenue Service (IRS) issued Notice 2020-23 which extends key tax deadlines for individuals and businesses in response to the COVID-19 pandemic. Notice 2020-23 expands the filing and payment relief for ERISA-covered retirement and welfare plans with a Form 5500 original or extended filing deadline on or after April 1, 2020 and before July 15, 2020.  With this extension, these plans now have until July 15, 2020 to file their Form 5500.   

This deadline extension is automatic, which means that plan sponsors do not have to call the IRS or file any extension forms, send letters, or other documents in order to receive this relief.

The chart below highlights the plans with a plan year-end which may benefit from Notice 2020-23 and have until July 15, 2020 to complete the required filing.

It is important to notice that the IRS Notice 2020-23 does not extend the filing deadline for 2019 Form 5500 filings where calendar year plans are due on July 31, 2020 or later.

It is recommended that employers work with their tax advisor to determine if any upcoming tax filing or payment deadlines, including the Form 5500, have been postponed. Employers with calendar year plans should be prepared to file their Forms 5500 by July 31, 2020, or request an extension by this date.

In addition, IRS Rev. Proc. 2018-58 provides that any postponement of the Form 5500 filing due date by the IRS under Code Section 7508A will also be permitted by the Department of Labor and Pension Benefit Guaranty Corporation (PBGC) for similarly situated plan administrators. The PBGC acknowledged this IRS notice in its own Disaster Relief Announcement but reminds filers that there are certain actions listed on the PBGC’s Exception List, that do not automatically qualify for the relief, that the PBGC views as creating a high risk of harm to plan participants.  For those actions, the PBGC will consider relief on a case-by-case basis. 

For example, the PBGC filing relief may help those defined benefit plan sponsors recently engaging in significant layoffs who now need to file a PBGC Reportable Event due to a single cause active participant reduction.

Enza Financial stands ready to help you and your plan participants through this unique time. We are here to help answer any questions you may have.

Kiowa Speck, AIF®, PPC®

Senior Retirement Consultant