IRS Tax Extension: What you Need to Know
The IRS updated its website to indicate that it has extended the 2019 IRS Tax filing deadline for making contributions to workplace-based retirement plans, IRAs, and health savings accounts to July 15, 2020.
These extensions are in accordance with IRS Notice 2020-18, which extended the deadline for filing federal income tax returns from April 15 to July 15.
The IRS points out that contributions can be made to an IRA and an HSA for a particular year at any time during the year or by the due date for filing a return for that year. Accordingly, the IRS says, it has extended the deadline for making contributions to an IRA and HSA for 2019 to July 15, 2020.
Similarly, the IRS has extended from April 15 to July 15, 2020, the grace period under Code Section 404(a)(6) for employers to make contributions to workplace-based retirement plans that are treated as made on account of 2019.
The IRS also has extended to July 15 the deadline for reporting and payment of the 10% additional tax on the amounts includible in gross income on a distribution taken from IRA or workplace-based retirement plan in 2019.
The IRS notes, however, that the extension to July 15 does not apply to excess elective deferrals to a workplace-based retirement plan. Therefore, excess deferrals (and income) still must be taken out of a retirement plan no later than April 15, 2020, in order to exclude the distributions from income.
The IRS provides questions and answers on these and other forms of relief on its website here.
If you have further questions, please feel free to contact us.
