On October 2, 2020, the Internal Revenue Service (IRS) issued Notice 2020-76 that extends the 2020 Section 6055 and 6056 filing date from February 1, 2021 to March 2, 2021, if filing on paper. If filing electronically, the due date is March 31, 2021. The extension not only delays the due date for employers to complete their filing, it also provides penalty relief related to the good-faith transition relief issued for the prior year’s reporting.
As noted, this is not the first year that such extension related to Forms 6055 and 6056 have been put into play, however, this year the IRS noted that this is the last year they intend to provide good-faith relief effort from penalties. Despite the extensions that have been issued, the IRS encourages employers to complete their filings as soon as practically possible.
Contact your Cowden representative for more information on this or other compliance issues.