If you have been paying attention to news reports, natural disasters throughout the country have been the main headlines. We have seen in the past as this occurs, the Internal Revenue Service will often provide relief to those impacted by delaying the due dates for certain tax filings. As the Plan Sponsor of a 401(k) Plan with the requirement to file a Form 5500 and for some to attach a completed 401(k) audit with the fling, understanding the relief provided can be very helpful.
Currently, there is help available for victims of Hurricane Ida (currently Louisiana only but we expect shortly for other areas to be added), the flooding in Tennessee that occurred in August, and the California Wildfire victims. Note that if the tax preparer is in the disaster area, often the relief may apply to the Plan Sponsor even if they are not in the impacted disaster zone. Frequently, the IRS will offer a postponed filing date which offers additional time for the taxpayer to complete the filing.
The IRS website indicates that on the Form 5500, filers should check Box D in Part 1 of the form and attach a statement describing the disaster relief they are filing under and additional specific information as required in the form’s instructions. Deadlines have been extended for Form 5500 filers in all of the above disaster areas.
We recommend you review the attached URL to identify if your community has been impacted and what relief is available. https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
At Summit CPA we specialize in retirement plan audits. If you would like to discuss our audit process in more detail or need an audit contact our office at (866) 497-9761 to schedule an appointment. We can help you navigate the world of the 401(k) audit as proficiently as possible. We also offer off-site assistance and flat-fee pricing so there are no surprises when the job is complete.