@rascle27 wrote:
How does the automatic extension as per an amended return "Filed pursuant to section 301.9100-2" affect the timetable for an ontime withdrawal of an excess contribution? It states generally that one has 6 months from the due date of the filing of the original return exclusive of extensions. So normally that'd be October 15th (April 15th plus 6 months), however with the due date moving to July 15th this year is the new date 6 months from that date or is July 15th itself considered some form of extension so October 15th holds?
Thanks in advance.
The "due date" was April 15 and 6 month extension is to Oct 15. The due date was "postponed" per IRS bulletin 2020-17. That did not change the original Oct 15, extended due date, it just made the tax return not late if filed before July 15 - it was "deemed" to have been filed on April 15.
On March 18, 2020, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2020-17 providing relief under section 7508A(a), which postponed the due date for certain Federal income tax payments from April 15, 2020, until July 15, 2020.
See IRS https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers that directly answers yur question.
A. Yes, provided you didn’t (or don’t) take a deduction for the excess contribution when you file your tax return. Also, if you file your return by July 15, 2020, and don’t withdraw the excess by that date, you can still avoid the excise tax if you withdraw the excess (and income on the excess amount) by October 15, 2020. See Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), for details.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
