IRS/DOL Disaster Relief for Victims of California Wildfires

On Wednesday, August 26, 2020, the IRS issued new guidance expanding tax deadline relief to taxpayers in California who were affected by wildfires, including an extension for filing Form 5500 for their employee benefit plans.  The following California counties are currently included in the disaster relief area: Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma, and Yolo.  Affected businesses with upcoming deadlines for filing 5500s (and certain tax filings*) that fell between August 14, 2020, and December 15, 2020, now have until December 15, 2020, under the special extension.  (If additional counties are added to the listing, they will be updated on the IRS disaster relief website.)

*Note, the relief does not extend to information returns such as employer ACA reporting (Forms 1094/1095), certain other information returns (W-2, 1097,1098, 1099 series and others), employment or excise tax deposits.  However, penalties on deposits due on or after August 14 and before August 31, 2020, will be waived as long as the deposits are made by August 31.

If you have questions about how this disaster relief affects required reporting for your health and welfare benefits, please contact your Hays Companies representative.  For general tax questions, you should consult with your tax advisor.

This document is provided for general information purposes only and should not be considered legal or tax advice or legal or tax opinion on any specific facts or circumstances. Readers are urged to consult their legal counsel and tax advisor concerning any legal or tax questions that may arise.

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