Updated Tuesday, March 24, 2020
On Wednesday, March 18, 2020 the Internal Revenue Service (IRS) announced “relief” for persons (i.e., individuals, businesses, etc.) to pay 2019 taxes due. On Saturday, March 21, 2020 the IRS issued a second announcement which added to the relief an extension to file 2019 federal income tax returns. The extended deadline for a person to file their 2019 tax return and pay any tax liability is July 15, 2020.
Wolters Kluwer initially posted this article indicating the tax-filing extension addressed in the second announcement, and in IRS Notice 2020-18, does not apply to the deadline for an individual to make a 2019 individual retirement account (IRA), Health Savings Account (HSA), or Coverdell Education Savings Account (CESA) regular contribution. However, on Tuesday, March 24, 2020 the IRS posted on its site Filing and Payment Deadlines Questions and Answers which specifically addresses the deadline for individuals to make 2019 IRA and HSA regular contributions.
Per Q&A 17, as it relates to IRA contributions for the 2019 tax year, and Q&A 21, as it relates to HSA contributions for the 2019 tax year, the deadline to make a regular contribution has also been extended from April 15 to July 15, 2020.
Please note the IRS indicates in Q&A 10 that relief does not apply to information return filing deadlines. For this reason, we’ll need to wait for the IRS to address how it will require an IRA custodian or trustee to report IRA and HSA regular contributions for 2019 that were made using the extended deadline.
For an opportunity to learn more about IRAs and other tax advantaged accounts, including Health Savings Accounts and Coverdell Education Savings Accounts, consider our On-Demand Video Training. For more information call us at 1-800-552-9408.
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