IRS Extends Tax Filing and HSA Contribution Deadline

With the usual April 15 tax filing deadline near, the IRS has announced via Notice 2021-21 that the Form 1040 filing deadline is extended to Monday, May 17, 2021.

Also per the notice, “the postponement of the due date for filing these Federal income tax returns to May 17, 2021, also automatically postpones to the same date the time for Affected Taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs) [and] health savings accounts (HSAs).”  Employers allowing employees to make pre-tax HSA payroll contributions for 2020 need to note this detail in the transaction sent to the bank so it’s credited to the correct year’s contribution limit.

Note this is not an extension for business tax filings or estimated income tax payments.  “Businesses and any other type of taxpayer who file Federal income tax returns on forms outside of the Form 1040 series are not Affected  Taxpayers for purposes of the relief…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.”

IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information.

This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.