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2019 ADP testing deadline

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Was the ADP/ACP deadline this year Friday March 13 or Monday March 16? Does anyone recall the statutory cite for this?

Thanks!

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Deadline for distributing ADP/ACP refunds without incurring a 10% excise tax on the employer—i.e., due 2 1/2 months following the plan year-end. March 15 falls on Sunday in 2020. No guidance clearly allows extending the deadline to the next business day. --From the 2020  ERISA  Plan Compliance Calendar.  

Most investment houses want the refunds submitted at least a week in advance.

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The law itself is clear.  Why would additional guidance be necessary?  It says “any act”.  Doesn’t get much broader than that. 

https://www.law.cornell.edu/uscode/text/26/7503

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. 

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28 minutes ago, shERPA said:

The law itself is clear.  Why would additional guidance be necessary?  It says “any act”.  Doesn’t get much broader than that. 

https://www.law.cornell.edu/uscode/text/26/7503

 

 

If you read my post there is no such allowance for ADP refunds.  You'll have to argue with the ERISA Plan Compliance Calendar.

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1 hour ago, ratherbereading said:

If you read my post there is no such allowance for ADP refunds.  You'll have to argue with the ERISA Plan Compliance Calendar.

Are you saying ADP refunds are not an "act" required by the IRC?

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On 3/20/2020 at 1:15 PM, shERPA said:

Are you saying ADP refunds are not an "act" required by the IRC?

IRS has previously contended that unless "the act" under 7503 pertains to the determination, collection, or refund of taxes, the weekend or holiday extension has to be expressly granted in the applicable statutory provision.

I believe the tax court has had a different opinion in at least one case, but it is still very much a gray area.

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Wouldn't the last day to make refunds also be the "determination" of taxes due?  If the refunds are late, there is a penalty tax.

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37 minutes ago, BG5150 said:

Wouldn't the last day to make refunds also be the "determination" of taxes due?  If the refunds are late, there is a penalty tax.

You would think so, but the IRS does not look at it that way.  They seem to be taking a "we are not going to address it" stance at this point, so you can at least argue for them to be reasonable, but their stating position will be "no". 

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There also might be a related ambiguity about the meaning of a half-month or two and a half months.

If a relevant year ends with November, which day in February would mark the end of two and a half months from the end of November?  Does it matter whether that February has 28 or 29 days?

For the point inquired about, is there a Treasury rule or subregulatory guidance that pegs the 15th of a month as the convention without regard to the number of days in a particular month?

 

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