Generally speaking, federally declared natural disasters provide special extensions to Form 5500s. This was most recently seen for those who reside in Texas, Louisiana, and Oklahoma and experienced the severe winter storm in February. The Form 5500 deadlines extended to June 15th for those with original due dates between February 8th or 11th and June 15th. Extended due dates for Alabama and Kentucky have recently been added. As we are headed into the tornado, hurricane, and wildfire seasons, Wrangle wanted to remind you of the special extension and key details surrounding special extensions.
Typically, within a week or two of a federally declared natural disaster, the IRS will mandate the special extension and communicate it via press release. The amount of time allotted varies. However, earlier this year, there were proposed regulations recorded in the Federal Register to have a mandatory 60-day extension. Wrangle is currently monitoring if the proposed rule will become final, and we will be sure to alert you.
Here are 2021’s Natural Disasters and resulting extensions to date. Please check back as this table is updated as new events occur.
|Natural Disaster||Business located within the Counties/Parishes Affected||The extension applies to deadlines – either an original or extended due date –||Relief wording Wrangle will list *||Source|
|Tennessee Severe Storm, straight-line winds, tornados and flooding||Campbell, Cannon, Cheatham, Claiborne, Clay, Davidson, Decatur, Fentress, Grainger, Hardeman, Henderson, Hickman, Jackson, Madison, Maury, McNairy, Moore, Overton, Scott, Smith, Wayne, Williamson, and Wilson counties||On or after March 25, 2021, and before August 2, 2021, they are postponed through August 2, 2021.||Tennessee Severe Storm Relief||https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-severe-storms-straight-line-winds-tornadoes-and-flooding-in-tennessee|
|Louisiana Severe Storm and Flooding||Ascension, Calcasieu, East Baton Rouge, Iberville, and Lafayette||On or after May 17, 2021, and before August 16, 2021 are postponed through August 16, 2021||Louisiana Severe Storm Relief||https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-severe-storms-and-flooding-in-louisiana|
|Michigan Severe Storm and Flooding||Washtenaw and Wayne counties||On or after June 25, 2021, and before November 1, 2021 are postponed through November 1, 2021||Michigan Severe Storm Relief||https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-severe-storms-flooding-and-tornadoes-in-michigan|
What Wrangle Does for a Special Extension
Please note: Wrangle will check the “special extension” box in Part I, Line D of the main body of the Form 550 and describe the relief on the associated explanation line.
What if a Late Notice is Received?
If the Plan Administrator does receive a late filing or late payment penalty notice from the IRS that has an original or extended filing that falls within the postponement period, the Plan Administrator should call the telephone number on the notice to have the IRS abate the penalty.
If you have any other questions on this matter or need assistance pinpointing a specific city in one of the disaster areas, feel free to contact Ann McAdam, email@example.com.