This article, initially posted on April 20, 2020, has been updated to take into account the May 28 release of Notice 2020-35 by the Internal Revenue Service (IRS). Notice 2020-35 amplifies guidance provided in Notice 2020-23, essentially further postponing the 2019 IRS Forms 5498 filing deadline until August 31.
On March 13, 2020 the President issued an emergency declaration in response to the ongoing Coronavirus pandemic. This declaration instructed the Secretary of the Treasury to provide relief from tax deadlines to Americans who have been adversely affected by the Coronavirus emergency. On April 9, 2020 the IRS issued additional guidance in Notice 2020-23 which was significant as it provides relief until July 15, 2020 as it relates to individual retirement accounts (IRAs), Health Savings Accounts (HSAs), and Coverdell Education Savings Accounts (CESAs) regular contributions and reporting for 2019. Notice 2020-23 amplified and clarified prior guidance issued by the IRS in Notices 2020-18 and 2020-20 which extend the timing of income tax return filing and payment deadlines until July 15, 2020. This article only addresses the impact of Notices 2020-35 and 2020-23 in the context of certain tax-advantaged savings and retirement accounts including IRAs, HSAs, and CESAs.
IRS Forms 5498 Reporting Deadline Further Postponed by Notice 2020-35
When released by the IRS, Notice 2020-23 initially caused some confusion with respect to the filing of IRS Form 5498 (IRAs), 5498-SA (HSAs), and 5498-ESA (CESAs) for 2019 because it lists specific filing obligations that had been given relief until July 15, 2020 but did not include Forms 5498 reporting. However, Affected Taxpayers and Specified Time Sensitive Actions are defined by reference to Rev. Proc. 2018-58, which includes contribution and certain reporting deadlines that must be met by custodians, trustees, and issuers of IRAs, HSAs, and CESAs. Because the consequences of the Coronavirus pandemic have been widespread, the additional relief under Notice 2020-23 is not conditioned on whether an individual or taxpayer is or has been directly affected by the Coronavirus pandemic. Notice 2020-35 specifically further postpones until August 31, 2020 the 2019 Forms 5498 filing and furnishing deadline.
Note that the various versions of IRS Form 5498 are typically filed by the custodian, trustee, or issuer of an IRA, HSA, or CESA, not the taxpayer (i.e., account owner) who makes contributions to the account.
Also note that the IRA, HSA, and CESA regular contribution deadline for 2019 which is postponed until July 15, 2020 by Notice 2020-23 is not further postponed by Notice 2020-35.
Other Tax-Advantaged Accounts Specific Postponed Deadlines
In addition to the 2019 IRS Forms 5498 reporting deadlines being postponed until August 31, 2020, deadlines applicable to any of the following acts that would have fallen on or after April 1, 2020 and before July 15, 2020 have been postponed until July 15, 2020:
- Simplified Employee Pension (SEP) and Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) plan contributions
- Indirect rollovers from employer sponsored retirement plans to IRAs
- 2019 traditional IRA, Roth IRA, and HSA regular contributions
- 2019 CESA regular contributions
- Rollovers between IRAs, between HSAs, and between CESAs
- 120-day rollover period for first-time home buyers
- Repayment of a Qualified Reservist Distribution
- Deadline to remove excess or unwanted IRA contributions
- Corrections under EPCRS and as added by Notice 2020-35, under a VCP compliance statement, the 150-day period for completing corrective actions including corrective plan amendments
- Nine-month qualified disclaimer period
- The return of a mistaken HSA distribution
It should come as much relief to many custodians, trustees, and issuers of IRAs, HSAs, and CESAs that there is additional time to file IRS Forms 5498 for 2019. Wolters Kluwer will continue to provide updated information on this or any other IRS announcements. Additionally, this is the time of year Wolters Kluwer posts an in-depth article on IRS Form 5498 reporting requirements; please look for this article to be published at a future date on Insights.
Steve LeRoux, Senior Specialized Consultant, Tax-Advantaged Accounts, Wolters Kluwer, and
Stevie D. Conlin, Vice President, Tax and Regulatory Counsel, Wolters Kluwer
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 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.