Minimum funding due date 9/15 or 9/17?

[AndyH]

I have a couple of clients with funds tied up till the markets open. Is minimum funding for a calendar year 9/15 or 9/17 since that is the next business day?

Any cites? Thanks.

P.S. Everything we've found (including Question 8 from the 1995 EA meeting) says 9/15 is firm. Any dissenting opinions?

[david rigby]

I think the rule is that it should be made by the due date. Weekend extensions normally do not apply to due dates for contributions, although they do apply to due dates for filings. Note that "making" a contribution does not mean that the trustee/custodian has to receive it by that date. Usually a postmark by that date is sufficient.

However, since financial markets have been closed a few days, it is possible that the IRS may give some "disaster relief".

[AndyH]

Thanks for the feeback. I agree with your points except the disaster relief issue. The Q&A says it's the IRS position that this is an ERISA Title I issue, which usually means that they won't or feel they can't do anything about it without legislation.

[david rigby]

I may get myself in trouble again by advocating for common sense.

There is no precedent for this disaster. If your ability to make your contribution on time is legitimately affected by the disaster, perhaps it makes sense to do the best you can, document why and when.

Then we'll see what the IRS says.

[Belgarath]

I agree that 9-15 is still technically the minimum funding deadline. I also agree with PAX that it would be nice to think that there would be some relief, or some "non-enforcement" on this issue, in absence of Congressional action giving official relief. Does anyone know if ASPA is planning some sort of letter to Treasury on this issue?

[david rigby]

IRS Notice

http://www.irs.gov/news/n-01-61.pdf

[AndyH]

Thank you very much.

[Belgarath]

Thanks PAX! One other question which occurred to me, which is probably galloping paranoia, but the DOL does that to me...

The intent of the regulation is very clear - but when I look at the 301.7508A-1©, it doesn't specifically list 5500 forms. It seems to me that these fall under the "other" category, and I can't imagine that the DOL would ever attempt to assert otherwise, lest they be publicly lynched. And that's what I'm going to tell people. Nevertheless, I'd feel better if someone agreed with me that the extensions apply to 5500 filings as well. What do you think?

[MGB]

I told our consultants yesterday that I interpreted the "all other" section of the regulation to include 5500 filings.

NOTE, however, that to get the filing relief, they must be an "affected taxpayer." That only includes those in the Presidentially-declared disaster areas. The Notice did say that those that cannot file or make a contribution due to the disruption in mail service are also affected. But, it would be hard to say that one could not get a postmark by Monday. However, if you were waiting for an audit report that has been delayed, that would be the type of situation that makes you an affected taxpayer.

As far as the DOL goes, I think they will be lenient. We have a case that needed to file something else this week on a 30-day "respond to the letter" issue. I just talked with the DOL and they said not to worry about it coming in late.

[Guest sussex9]

I spoke with PWBA yesterday and they said they would issue a statement on Monday September 17, 2001. They were waiting for a response from the IRS who share the 5500 forms/schedule responsibility with them. Remember PWBA is part of DOL who had a lot of people In the WTC in the OSHA offices.

It sounds like PWBA will forgive late filings of 5500.

[mwyatt]

On the lighter side (if possible under these horrible circumstances), see page 4 of the Notice:

"The perpetrators of the attack, and anyone aiding the attack, will not qualify for relief under this notice."

May they roast in hell...

[david rigby]

PWBA Notice

http://www.benefitslink.com/cgi-bin/show_a...tabase_id=24642