Calling all plan sponsors: If your plan sponsor clients recently received approval for a filing extension they filed months ago for 2019 Form 5500 – there’s been a change.
Plan sponsor clients don’t have to do anything if they received this approval (likely filed last summer) in recent weeks, as letters have gone out.
This might be confusing to some of your plan sponsor clients and that’s OK!
Here’s what you and your plan sponsor clients need to know. Read on!
In 2020, the Internal Revenue Service in response to COVID-19 extended the Form 5500 filing deadlines for SOME non-calendar year benefit plans. However, that extension was only through July 15, 2020. The IRS did not extend these Form 5500 filing deadlines beyond the normal deadline of July 31.
What this means is, your normal filing deadlines apply, so your plan sponsor clients should have filed as normal – according to the typical year end date of Dec. 31.
So, in a nutshell, despite the letters that have been recently received, any plans that wanted or needed to extend the deadline to file Form 5500 had to ask for an extension by July 31, 2020 – and then file the form by Oct. 15, 2020.
Typically, these letters are mailed out earlier but they were just sent out recently.
We don’t have an answer as to why this has happened, but it’s something to be aware of, in any event. It seems like there was some sort of delay, but your plan sponsor clients are free to ignore the letter.
The IRS may provide some communication eventually about it but for now, no action is required on the part of your clients.
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