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Yes, it does defeat the explicit provision in the law that the PPP forgiveness is not income, unlike other debt forgiveness. And I think Grassley was quoted in today's WSJ article saying exactly this. Although it's not really a surprise that there are glitches in a hastily drafted piece of legislation. So Congress may or may not act to fix it, we will see. Could end up being cannon fodder for other political agendas. As Frank Zappa said: "The United States is a nation of laws, badly written and randomly enforced."

The amount ALLOCATED is the 415 amount. The participant doesn't have it until then, so the $105k is what counts for 415 purpose. We (a large, well known recordkeeper) STRONGLY discourage this for that reason, and about 60 others, including 1) the plan probably doesn't contain a provision for it; 2) the IRS wouldn't qualify a plan that contains such a provision (according to them, there are limited uses for "unallocated suspense accounts" and the client's budget isn't one of them; and 3) what happens if you have allocation conditions not met.... BTW, this has become a big issue right now, as employers are trying to shelter PPP money to qualify for loan forgiveness. No opinion on if that works or it's "fraud," but not our call.

Agree with Luke Bailey. We had a client a few years ago that received an IRS Notice and a bill for $15,000 because he forgot to file. We filed for him under DFVC and client paid the fee. We presented to IRS and the $15,000 came right off. As long as you file prior to receiving any correspondence from DOL, you're OK.

You need to file under DFVCP before the DOL contacts you. The fact that the IRS has contacted you does not disqualify you from DFVCP, only being contacted by DOL can do that. And IRS will typically not assess penalties if you file through DFVCP with DOL. No guarantee that this will work, but I would strongly consider filing amended 5500's right away checking the DFVCP box on page 1 and then go online and pay the DFVCP fee and hope that DOL does not contact you first.

This is what we use; some of us are short-winded ?. We prepare it for the client to sign and fax in. I gave the link to the IRS website above with fax numbers. Dear IRS: Please be advised of the following change of address for an existing tax ID number: Tax ID number: xx-xxxxxx Name: XYZg, Inc. Profit Sharing Plan New address: xx Avenue City, State, ZIP Please adjust your records accordingly. Sincerely, (Trustee)

You don't really have an EIN for the plan, you have a Trust ID Number for the trust (yes, it looks the same format). The employer's EIN is what is supposed to be used on the 5500; the TIN is used just for holding assets and reporting distributions from the trust (unless you are on a platform; then the platform uses ITS EIN to report the distributions). There is a process for informing the IRS of a name change associated with an EIN. In this case, you should use the employer EIN and notify the change via the boxes on top of the 5500. I'll try to remember to have my staff give me the info for how you get an EIN assigned to a different name tomorrow and post it.

This might be helpful: https://www.nceo.org/articles/rights-esop-participants

If A bought B in an asset sale, is A allowed to assume the plan if it wants too? In the same fashion Bill describes? Not unless B agrees to transfer sponsorship; the plan doesn't come along in an asst sale.

See page 2 of the Form 8915-B instructions for an analogous situation: https://www.irs.gov/pub/irs-pdf/i8915b.pdf Any repayments after the first year will reduce the amount of ratable income included in the year of repayment. Any repayment in excess of that year's ratable taxable amount can be carried back (by amending prior year's return) or forward.

Yes.