IRS extended sole-prop filing deadline to May 17th

[Jakyasar]

Hi

Reading Notice 2021-59 and looks like all sole-proprietorship 2020 filings have been extended to May 17th.

I did not see anything on C-corps, correct?

Also, with this extension, all contribution deadlines have been extended to May 17th as well, correct?

Looks like all all states have extended the April 15th deadline except for a few that are pending. There are also a few states that do not have state taxes.

Whether a state extends or not, the 2020 contribution deadline is on federal level and extended to May 17th. Is this correct?

Thank you

 

[Lois Baker]

Just issued by IRS:  https://benefitslink.com/src/irs/n-21-21.pdf

[Jakyasar]

Hi Lois

I saw this but unless I am not seeing/understanding, pension plans not included. I hope someone will correct me.

Thank you

[Lou S.]

1 hour ago, Jakyasar said:

Hi Lois

I saw this but unless I am not seeing/understanding, pension plans not included. I hope someone will correct me.

Thank you

Deductibility of retirement contributions is tied to the due date of tax returns with extensions. So if the IRS extends a tax filing deadline for an entity, that extends the time to make a deductible contribution.

[KdGal]

C-Corporation due date was not extended.  The extension to May 17th only applies to individual taxpayers (including Schedule C sole proprietors).  It also extends the date to make IRA contributions for individual taxpayers to May 17th as well. 

[SSRRS]

On 3/29/2021 at 5:27 PM, Lou S. said:

Deductibility of retirement contributions is tied to the due date of tax returns with extensions. So if the IRS extends a tax filing deadline for an entity, that extends the time to make a deductible contribution.

1. Lou S., thank you for this point. Would this apply for DB minimum funding as well, or if a DB plan has a minimum  required contribution, then it would still be due  (the minimum required  portion of the contribution) by 8.5 months after the plan year end.- and the rest of the contribution up to the maximum , can be made up until the new due date of the return? Thank you.

[Lou S.]

13 minutes ago, SSRRS said:

1. Lou S., thank you for this point. Would this apply for DB minimum funding as well, or if a DB plan has a minimum  required contribution, then it would still be due  (the minimum required  portion of the contribution) by 8.5 months after the plan year end.- and the rest of the contribution up to the maximum , can be made up until the new due date of the return? Thank you.

For timeliness of minimum funding under 412, that remains as 8.5 months after PYE. You can get some situations where a contribution is timely for minimum funding but not for deductibility in a particular year and vice a versa depending on dates which can be different. Sometimes this can be used to your advantage in planning sometimes it bites you.

[SSRRS]

58 minutes ago, Lou S. said:

For timeliness of minimum funding under 412, that remains as 8.5 months after PYE. You can get some situations where a contribution is timely for minimum funding but not for deductibility in a particular year and vice a versa depending on dates which can be different. Sometimes this can be used to your advantage in planning sometimes it bites you.

Thank you so much Lou S.