IRS Extends IRA, HSA, ESA Contribution Deadline and Form 5498 Filing Deadline
On March 29, the IRS issued Notice 2021-21, making official a previously announced delay of the 2020 individual federal income tax filing deadline as a result of the ongoing COVID-19 Emergency Declaration issued in March 2020. The federal tax return due date for an affected taxpayer is automatically postponed to May 17, 2021. An “affected taxpayer” is defined as any person with a federal income tax return or income tax payment filed on a Form 1040, U.S. Individual Income Tax Return, series with an original due date of April 15, 2021. No form, including IRS Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, is required to obtain this relief.
The relief applies to all schedules, returns, and other forms that are attachments to the Form 1040 series or are required to be filed by the Form 1040 series due date. It does not apply to businesses or any other type of taxpayer who files federal income tax returns on forms other than the Form 1040 series.
This guidance only applies to the filing of federal tax returns. Many states have issued similar delays. Individuals are advised to review their state and local regulations to ensure compliance with all 2020 filing deadlines.
Making Contributions
In conjunction with the Form 1040 series delay, Notice 2021-21 automatically postpones to May 17, 2021, the deadline for affected taxpayers to make 2020 contributions to their Traditional IRAs, Roth IRAs, health savings accounts (HSAs), Archer medical savings accounts (MSAs), and Coverdell education savings accounts (ESAs). Notice 2021-21 also automatically postpones to May 17, 2021, the time for reporting and payment of the 10 percent additional tax on amounts includible in gross income from 2020 IRA or employer-based retirement plan distributions.
Filing IRS Form 5498
The due date for filing and furnishing Form 5498, IRA Contribution Information, series forms is postponed to June 30, 2021.
Notice 2021-21 further states that “no extension is provided in this notice for the payment or deposit of any other type of federal tax, including federal estimated income tax payments, or for the filing of any federal return other than the Form 1040 series and the Form 5498 series for the 2020 taxable year.”
NOTE: Notice 2021-21 does not change the deadline extensions granted by the IRS for qualified individuals affected by recent disasters in certain states, such as Louisiana, Oklahoma, and Texas.
