Cars in flood
ComplianceTax & AccountingJune 11, 2021

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

As a result of severe storms, straight-line winds, tornadoes, and flooding in that began on February 27, 2021 in parts of West Virginia, the Internal Revenue Service (IRS) has announced that affected taxpayers will receive tax relief.

The tax relief postpones until June 30, 2021 certain deadlines falling on or after February 27, 2021 and before June 30, 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.

Note: Contributions made to IRAs from May 18, 2021 through June 30, 2021 that are designated for 2020 by individuals affected by the 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.

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.

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.