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5500 Inquiry - 9 years later


LMOC

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Plan Sponsor received a notice of a change to the 5500 and a fine for a 5500 filed 9 years ago. Is there maximum amount of time the IRS can go back and change a 5500? I was thinking it was 7 years record retention or 3 years.

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Plan Sponsor received a notice of a change to the 5500 and a fine for a 5500 filed 9 years ago. Is there maximum amount of time the IRS can go back and change a 5500? I was thinking it was 7 years record retention or 3 years.

Do you mean that this happened recently? That is, sponsor filed the 2005 Form 5500 when it was due, followed by 9 years of deafening silence, followed by an IRS-imposed change and a fine? Really?

Always check with your actuary first!

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Yes, the Plan Sponsor received the letter yesterday. It is actually an off calendar year end Plan, so it was for - 9/30/2006 PYE. There have not been issues with late filing. They are charging $900 if they don't respond of course. The IRS said it made changes, but didn't say what changes were made.. They are sending me the letter so I can read everything. This is so odd.

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Since when does IRS make "changes" to a 5500? They either threaten you with penalties because it is incomplete in some fashion, or they pull the plan for examination. That's what is suspicious to me.

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To be on the safe side, you might want to look up a proper IRS number to call and use that number to see if this is legitimate. You will probably not want to try calling any numbers shown on what nearly everyone here feels may be a scam. If it is, the IRS probably wants to get this contact investigated.

Given the strained resources the IRS currently has, investigatory reviews of 2005 Form 5500 filings appear to be most unlikely!

Always check with your actuary first!

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  • 3 weeks later...

Does the letter have a number on it "CP220"?

If so, it's probably from the collections branch. They're possible catching up on old fines.

Seems as though it must be too late - what is the statute of limitations on paying fines? Surely not forever!

Always check with your actuary first!

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Hi All,

Sorry, crazy day today. I know all of you know how that feels. It does say, CP220. When we called, they said it was a legitimate claim and that letters had gone out every year since, but the client has not gotten them. We were told there is not a statue of limitations on the penalty for late filing.

I think CTipper is right, they might be catching up on old fines to get some money in.

I couldn't get the client name and info darkened out enough, but I'll try again so I can post it.

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  • 1 year later...

An advisor forwarded a copy of a CP220 letter that his client received, which reflects a substantial fine.  The client is currently with another TPA firm and filed their 2014 5500 in 2016 after receiving an initial notice, but they did not file under DFVC.  They filed the 5500s for other years in a timely manner.

At this point, is the main option available to the employer, a letter regarding the difficult circumstances that resulted in the late filing in the hopes of reducing the penalty?

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