Coalition Comment Letter to Treasury and IRS re: Contribution Due Date Under CARES ACT Section 3608

Monday, August 31, 2020 - 3:30pm

Mr. Stephen Tackney
Deputy Associate Chief Counsel
Tax Exempt and Government Entities [TE/GE]
Office of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes)
Internal Revenue Service
1111 Constitution Ave NW
Washington, DC 20224

RE: Contribution Due Date Under CARES ACT Section 360 8

Dear Mr. Tackney:


We appreciate the work that the Department of the Treasury (Treasury) and the Internal Revenue
Service (IRS) have done to implement the pension and retirement provisions in the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act ). Recently, Treasury /IRS issued Notice 2020 -61, which
addressed issues related to CARES Act Section 3608. This section provides that the due date for any
minimum required contribution (as determined under Internal Revenue Code (IRC) section 430(a) and the
Employee Retirement Income Security Act ( ERISA ) section 303(a)) that would otherwise be due under
Code section 430(j) during 2020 is delayed until January 1, 2021.

Notice 2020 -61 did not address that January 1, 2021 is a legal holiday. Instead, in all of the
examples in the Notice , Treasury /IRS assumed that any delayed contributions made under CARES Act
Section 3608 would be made on December 31, 2020.

This assumption is contrary to our belief that because January 1, 2021 is a legal holiday, any
delayed contributions under CARES Act Section 360 8 are due on January 4 , 2021 . Specifically, IRC
Section 7503 provides that:

When the last day prescribed under authority of the internal revenue laws for performing any act
falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered
timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal
holiday. 


Under 26 C.F.R. Section 301.7503 -1(b ) the term “legal holiday” “ includes the legal holidays in
the District of Columbia as found in D.C. Code Ann. 28 -2701.” January 1 is a legal holiday under the
District of Columbia Code (and in every state and territory of the United States). As such, be cause the
due date under CARES Act Section 3608 is a legal holiday, the due date for any contributions is the next
day that is not a Saturday, Sunday or legal holiday, which is January 4, 2021. Consequently, we ask that
Treasury/IRS issue guidance confirm ing that the due date for delayed contributions under CARES Act
Section 3608 is January 4, 2021 in accordance with IRC Section 7503.

As always, we appreciate your attention to this matter, and we look forward to discussing this
with you.

Sincerely,
American Benefits Council
National Association of Manufacturers
The Committee on Investment of Employee Benefit Assets
The ERISA Industry Committee
U.S. Chamber of Commerce

cc: Ms. Linda Marshall and Mr. Tom Morgan , Office of the Associate Chief Counsel (Employee Benefits,
Exempt Org anizations, and Employment Taxes) , Internal Revenue Service