Compliance Update - May, 2020
IRS grants relief to Form 5498, 5498-ESA, & 5498-SA and certain Form 941/943 filers.
The IRS has posted https://www.irs.gov/pub/irs-drop/n-20-35.pdf that grants relief to filers of the certain form types. Form 5498, 5498-ESA, & 5498-SA filers now have until August 31, 2020 to file their forms with the IRS and furnish the form to the their recipients. CPEOs can now file forms 941/943 and all accompanying schedules on paper for the second, third, and fourth quarter of 2020. The requirements to file forms 941/943 electronically have been waived.
Form 5498, 5498-ESA, & 5498-SA
For Form 5498, IRA Contribution Information, Form 5498-ESA, Coverdell ESA Contribution Information, and the Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, the due date for filing and furnishing the forms is postponed to August 31, 2020. The period beginning on the original due date of those forms and ending on August 31, 2020, will be disregarded in the calculation of any penalty for failure to file those forms.
Form 941/943
The notice also provides a temporary waiver of the requirement under A 31.3511-1(g)(2) that CPEOs file certain employment tax returns, and their accompanying schedules, on magnetic media (including electronic filing). This temporary waiver is extended to all CPEOs; individual requests for waiver do not need to be submitted. The waiver applies only to Forms 941 filed for the second, third, and fourth quarter of 2020 and only to Forms 943 filed for calendar year 2020, and their accompanying schedules. Accordingly, CPEOs are permitted, but not required, to file a paper Form 941, and its accompanying schedules, in lieu of electronic submission for the second, third, and fourth quarters of calendar year 2020. In addition, CPEOs are permitted, but not required, to file a paper Form 943, and its accompanying schedules, in lieu of electronic submission for calendar year 2020.