July 28, 1994
Filing Deadlines Extended for Flood Victims
The Internal Revenue Service has granted relief to taxpayers in the designated disaster
area of the southeastern United States who are unable to meet their federal tax
obligations because of the recent flooding. Today's release extends the time for filing
with respect to pension and other employee benefit plans to October 17, 1994. The U.S.
Department of Labor's Pension and Welfare Benefits Administration also has jurisdiction in
employee benefit matters and has joined with the Service in providing the relief described
in this news release.
The extension applies to plans located in a county designated by the Federal Emergency
Management Agency as a Federal disaster area as a result of the flooding, as well as in
cases where plan administrators are unable to obtain the information necessary for filing
from service providers, banks, or insurance companies who operations were directly
affected by the flooding.
In addition, the extension applies to banks and insurance companies affected by the
flooding which are required in certain instances to file reports with the Department of
The following rules apply in the case of pension and employee benefit plan returns and
related excise taxes required to be filed or paid on or after July 1, 1994. The Agencies
will consider filers affected by the disaster as having reasonable cause for late filing
and/or payment will therefore not impose any late filing or late payment penalties if the
relevant return if filed or tax paid by October 17, 1994.
Thus, for example, information returns, such as the Form 5500 series of returns, and
excise tax returns, such as for reporting and paying a tax on prohibited transactions or
reversion of plan assets to the employer, which are due within the specified time period
will not be assessed the late filing or late penalties if the returns are filed and the
taxes paid by October 17, 1994.
To qualify for the extension, returns and reports must be marked in red, bold print
"Flood '94" on the top center of the first page of the return or document. The
report of an employee benefit plan not located within the designated disaster area must
also include, as an attachment to the report, the county in which the service provider is
However, taxpayers should be aware that statutory deadlines cannot be administratively
extended by the Service. Under section 404(a)(6) of the Code, amounts contributed to
qualified benefit plans may be deducted on the return for the prior year only if the
contribution is made by the due date (with extensions) of that return. Also, certain
contributions are required to be made to pension plans by specified dates under section
412 of the Code. Similarly, if a distribution from a plan is to be rolled over to a
qualified plan or Individual Retirement Account and not included in income, that rollover
is statutorily required to be made within 60 days of receipt of the distribution.
Taxpayers are advised that they must make these contributions or payments by the statutory
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