SIFMA, Bankers Seek Reporting Extension for IRAs, Other Accounts

April 22, 2020

Michael J. Desmond, Chief Counsel
William M. Paul, Deputy Chief Counsel
Drita Tonuzi, Deputy Chief Counsel
Internal Revenue Service
1111 Constitution Ave., NW
Washington DC 20224

Ladies and Gentlemen:

The Securities Industry and Financial Markets Association (“SIFMA”) and the American Bankers Association (“ABA”) write to seek additional time for certain reporting required of broker-dealers, banks, and other recordkeeping institutions with respect to the Form 5498 and related Forms3 (collectively, “Form 5498”). SIFMA and ABA members act as custodian and trustee for tens of millions of Individual Retirement Accounts and similar accounts whose contributions are reported on Form 5498.

We appreciate IRS Notice 2020-23, which, by reference to IRS Revenue Procedure 2018-58, delays the due date for many taxpayer payments and filings to July 15, 2020. The effect of that Notice is to allow individuals an extension from April 15, 2020 to July 15, 2020 to make an IRA contribution on account of calendar year 2019. The Form 5498, which reports IRA contributions, is ordinarily due on May 31, 2020. Notice 2020-23 extends that deadline to July 15. We ask that the IRS confirm that custodians and trustees be allowed to report all 2019 contributions made through July 15, 2020, in the 2019 Form 5498 and not require those contributions made between April 15 and July 15, 2020, to be reported as “late contributions” in the 2020 Form 5498.

Assuming all 2019 contributions may be reported in the 2019 Form 5498, we think the choice of the same date for the contribution and for the report was simply an inadvertent error on the part of the IRS. As is evident, it would be impossible for a recordkeeper to file a Form 5498 on the very day that an IRA contribution was made. No system could reasonably capture the data, individualize the report and file it in minutes, and that assumes that the custodian would have received the contribution on July 15, rather than, as is sometimes the case, a few days later through the mail. We believe this would create a reporting situation that would be impossible to meet.

SIFMA and ABA, therefore, respectfully request that the IRS extend the due date for the Form 5498 to at least August 31, 2020, and preferably to September 15, 2020, to account for mail delays over the summer. We appreciate the Service's attention to this issue and we want to take this opportunity to express our gratitude for the responsiveness and assistance of IRS staff in navigating through the provisions of Families First Coronavirus Response Act, the CARES Act, and the many due dates that need to be extended under Code section 7805. Their help has been invaluable.

Best regards,

Lisa J. Bleier
Managing Director and Associate General Counsel
SIFMA

Phoebe A. Papageorgiou
Vice President, Trust Policy
ABA