Barbed wire covered in ice
ComplianceTax & AccountingMarch 01, 2021

IRS announces tax relief for individuals affected by winter storms in Oklahoma: IRA and HSA deadlines extended for some

As a result of winter storms in Oklahoma that began on February 8, 2021 the IRS has announced that affected taxpayers will receive tax relief.

The tax relief postpones until June 15, 2021 certain deadlines falling on or after February 8, 2021 and before June 15, 2021. Deadlines that apply to individual retirement accounts (IRAs), Health Saving Accounts (HSAs), Coverdell Education Savings Accounts (CESAs), and other tax-advantaged accounts that fall within this time-period are extended. The IRS’s Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on returns, payments, and tax-related actions qualifying for the additional time.

Please note that unless an act is specifically listed in Revenue Procedure 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits.

Update: The April 15, 2021 deadline for an individual to make an IRA, HSA, or CESA regular contribution for 2020 falls within the time range defined above, that deadline is extended to June 15, 2021. With that said, on March 29, 2021 the IRS released Notice 2021-21 confirming that the postponement of the 2020 tax-filing deadline from April 15, 2021 to May 17, 2021 for all taxpayers, applies to the deadline by which IRA, HSA, and CESA regular contributions can be made for 2020. Additionally, the Notice indicates the 2020 filing and furnishing deadlines for IRS Forms 5498 (IRA), 5498-SA (HSA), and 5498-ESA (CESA) that report such contributions are generally postponed from June 1, 2021 to June 30, 2021. Due to this, IRA, HSA, and CESA regular contributions made through May 17, 2021 that are designated for 2020 should be reported as regular contributions on the applicable 2020 Form 5498 series document. Contributions made to IRAs from May 18, 2021 through June 15, 2021 that are designated for 2020 by individuals affected by the winter storms described above should be reported on a 2021 Form 5498 (due May 31, 2022) using the Postponed/Late Contributions instructions for Boxes 13a., 13b., and 13c. of the Form 5498 Instructions. The IRS has not provided guidance for reporting contributions made to an HSA or CESA from May 18, 2021 through June 15, 2021 that are designated for 2020.

For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library or on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or you can call us at 1-800-552-9408.
Mike Schiller
Manager, Specialized Consulting, Tax Advantaged Accounts
With more than 24 years of experience, Mike has worked closely with hundreds of financial organizations to help them create, implement, and maintain their tax-advantaged accounts program.