Federal agencies will be closed Wednesday, December 5, 2018, as part of the national day of mourning for former president George H.W. Bush, the White House announced on December 1, 2018.

In an executive order, President Trump said federal government offices will be closed December 5, 2018, as a mark of respect for George H. W. Bush. Although many federal agencies, including the US Postal Service, will be closed the Federal Reserve banks will remain open. (We understand that several commercial banks in different states are closing.)

Because the Federal Reserve is not among the federal agencies that will close on December 5, 2018, for the George H.W. Bush national day of mourning, federal payroll tax deposit due dates are not extended, as they are with other federal holidays.

In dealing with the same issue as it pertained to the national day of mourning for former Presidents Reagan (June 11, 2004) and Nixon (April 27, 1994), the IRS took the position that it was not a federal holiday for deposit due date purposes, despite the fact that the U.S. Postal Service and many state banks were closed. Following a public outcry from various organizations representing employers and payroll professionals, the IRS agreed to grant automatic penalty relief for deposits due on the Nixon national day of mourning if the deposit was made on the next business day.

Ernst & Young LLP observations

In the absence of guidance from IRS regarding the George H.W. Bush national day of mourning, employers are required to meet any deposit obligations that are due on Wednesday, December 5, 2018. However, if an employer is not able to make a timely deposit because its local bank is closed, it should document the reason for missing the deposit deadline, and request penalty abatement should the IRS make such assessment.

Should the IRS make any announcements pursuant to the impact of deposits due on December 5, 2018, we will issue a supplemental Alert immediately.

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