LMOC Posted April 26, 2016 Share Posted April 26, 2016 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. Link to comment Share on other sites More sharing options...
My 2 cents Posted April 26, 2016 Share Posted April 26, 2016 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! Link to comment Share on other sites More sharing options...
LMOC Posted April 26, 2016 Author Share Posted April 26, 2016 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. Link to comment Share on other sites More sharing options...
jpod Posted April 26, 2016 Share Posted April 26, 2016 Sounds like a scammer to me. Link to comment Share on other sites More sharing options...
LMOC Posted April 26, 2016 Author Share Posted April 26, 2016 Uhmmm....I'll review the letter and see. But, how far back can the IRS go on changing a 5500? Link to comment Share on other sites More sharing options...
Belgarath Posted April 26, 2016 Share Posted April 26, 2016 I agree with Jpod, although obviously don't know. $900 seems like a strange number for something supposedly this old, also. I'd wait to see the letter, and see if it really is the IRS and what it is really all about. Link to comment Share on other sites More sharing options...
jpod Posted April 26, 2016 Share Posted April 26, 2016 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. hr for me 1 Link to comment Share on other sites More sharing options...
LMOC Posted April 26, 2016 Author Share Posted April 26, 2016 Exactly! It was so odd to me. Thanks for the information. Link to comment Share on other sites More sharing options...
Griswold Posted April 26, 2016 Share Posted April 26, 2016 Generally the IRS would only go back three years, six if there's a substantial understatement, or forever if it involves fraud. But yeah, this sounds fishy. Link to comment Share on other sites More sharing options...
Mike Preston Posted April 26, 2016 Share Posted April 26, 2016 I'd love to see a redacted copy of what you get from your client. 99 and 44/100 % likely a scam. ESOP Guy and hr for me 2 Link to comment Share on other sites More sharing options...
BG5150 Posted April 27, 2016 Share Posted April 27, 2016 I'd love to see a redacted copy of what you get from your client. 99 and 44/100 % likely a scam. Me, too, please! LMOC 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Tom Poje Posted April 27, 2016 Share Posted April 27, 2016 maybe the same folks who call me at home from "Windows" and "Dell" telling me they noticed my computer has a virus, and they can fix it for a modest fee. Link to comment Share on other sites More sharing options...
LMOC Posted April 27, 2016 Author Share Posted April 27, 2016 HI All, I will post it today. Very interesting letter. Griswold 1 Link to comment Share on other sites More sharing options...
My 2 cents Posted April 27, 2016 Share Posted April 27, 2016 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! hr for me 1 Always check with your actuary first! Link to comment Share on other sites More sharing options...
jpod Posted April 27, 2016 Share Posted April 27, 2016 Did the client save the envelope it came in? That could be interesting too. Link to comment Share on other sites More sharing options...
GMK Posted April 27, 2016 Share Posted April 27, 2016 and copies to the FBI ... maybe? Link to comment Share on other sites More sharing options...
Bill Presson Posted April 27, 2016 Share Posted April 27, 2016 Anxious to see this! William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
CTipper Posted May 13, 2016 Share Posted May 13, 2016 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. Link to comment Share on other sites More sharing options...
My 2 cents Posted May 13, 2016 Share Posted May 13, 2016 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! Link to comment Share on other sites More sharing options...
AndyH Posted May 13, 2016 Share Posted May 13, 2016 Is there a letter? Link to comment Share on other sites More sharing options...
BG5150 Posted May 13, 2016 Share Posted May 13, 2016 HI All, I will post it today. Very interesting letter. Did you post it here? I do not see it. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
LMOC Posted May 13, 2016 Author Share Posted May 13, 2016 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. Link to comment Share on other sites More sharing options...
jpod Posted May 13, 2016 Share Posted May 13, 2016 Does the letter actually use the word "fine." If so it is a scammer. Link to comment Share on other sites More sharing options...
BG5150 Posted May 16, 2016 Share Posted May 16, 2016 I couldn't get the client name and info darkened out enough, but I'll try again so I can post it. White Out. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
TPA2015 Posted May 24, 2017 Share Posted May 24, 2017 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? Link to comment Share on other sites More sharing options...
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