While governmental plans are not subject to any federal rules requiring a physical presence, those requiring in-person notarization may be interested in this guidance.

Background

The COVID-19 pandemic made the physical presence requirement difficult, and, in some cases, dangerous. In response, the IRS relaxed its “physical presence” signing requirement in June 2020. Notice 2020-42 provided temporary audio-video alternatives through December 31, 2020 as options for notaries in states that allowed remote electronic notarization and for plan administrators that wished to use electronic approval.

IRS Notice 2021-3 extended that relief until June 30, 2021.

The latest extension

The latest IRS guidance, Notice 2021-40, extends the relief, without change, to June 30, 2022.

As before, plans are not required to use the audio-video alternative.

The IRS seeks input on the temporary relief

IRS requests comments by September 30, 2021, including on whether:

• The temporary relief has resulted in fraud, spousal coercion or other abuse
• The temporary relief should be made permanent in the current or a changed form

Action item

Plan sponsors that are using the temporary audio-video options may continue to use them without change.