Hurricane Sandy ReliefDecember 13, 2012
Janet M. Nahorney, CPA
The Internal Revenue Service (IRS) and the Department of Labor (DOL) have issued guidance providing relief for those affected by Hurricane Sandy.
On November 16, 2012 the IRS issued Announcement 2012-44 relaxing the rules for participant loans and hardship distributions for those affected by Hurricane Sandy. Withdrawals must be made between October 26, 2012 and February 1, 2013. This announcement also provides guidance delaying certain filing requirements to February 1, 2013. This announcement only applies to taxpayers in the impacted areas and is in addition to the relief already provided for Form 5500 filing under IRS News Release IR-2-12-83.
- On November 20, 2012 the DOL issued guidance stating it would not treat any entity or person as having violated the provisions of title I of ERISA solely because they complied with the provision of the IRS announcement. The DOL also stated they will not seek to enforce contribution timeliness rules or violations of the blackout period 30-day notice rules for those taxpayers in the impacted areas. In addition, the announcement provided relief for group benefit plans relating to the filing of benefit claims and COBRA benefits.
Click on the links below to go to the IRS and DOL websites to review the full details of these announcements:
Best wishes for Happy Holidays and a Healthy and Prosperous New Year!