Q: Does the IRS tax filing relief for disasters extend to plan sponsors whose service providers are located in a federally declared disaster zone? Though we were not in the Hurricane Helene disaster zone, our auditors were, and we have not heard from them for several weeks. We had a retirement plan Form 5500 due on October 15 that we were unable to file, since they have not yet provided us with the audited financial statements.

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: Generally, relief for federally declared disasters does include some relief related to service providers. Code Section 7508A(a)(1) permits taxpayers to postpone filing if they are impacted by a federally declared disaster; Rev. Proc. 2018-58 specifically provides that Section 7508A(a)(1) applies to Form 5500. The Department of Labor and Pension Benefit Guaranty Corporation also automatically accept any extension granted by the IRS with respect to Form 5500 in the case of a federally declared disaster.

Plan sponsors who have service providers located in a federally declared disaster zone may also qualify for relief. In Rev. Proc. 2018-58, the IRS stated that “[t]axpayers who are unable on a timely basis to obtain information necessary for completing the forms from a bank, insurance company, or any other service provider because such service provider’s operations are located in a covered disaster area will be treated as ‘affected taxpayers.’”

However, it is advisable for plan sponsors in this situation to call the IRS disaster hotline (866-562-5227) to determine whether they qualify for the Form 5500 filing deadline extension to  May 1, 2025. As noted in the IRS’ taxpayer relief announcement for Hurricanes Helene and Milton, “[t]axpayers should also call this number if they live outside the disaster area but believe they qualify for a disaster-related extension or deadline postponement. This might be true, for example, if their records necessary to meet a deadline occurring during the postponement period are located in the affected area.” Also, as with any significant plan issue, it would be wise to contact outside retirement plan counsel.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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