Extensions due to Terrorist attacks

[dmb]

Does anyone know if minimum funding deadlines (9/15) or 5500 filing deadlines (9/15 or 10/15) or any other pension related filings have been extended due to the terrorist attacks?? Thanks.

[AndyH]

See the thread I started in the DB section for a discussion of this. I'll try to link it below There was a notice issued and there is a link to it. It is not easy reading. Something more may be issued today regarding 5500 filings.

http://benefitslink.com/boards/index.php?showtopic=11552

[david rigby]

Another discussion:

http://benefitslink.com/boards/index.php?showtopic=11579

I would like someone else to review my conclusion, and respond with correction or confirmation.

Thanks.

[Belgarath]

PAX - I came to the same conclusion. I wasn't at all sure about it until I actually looked at the 301.7508 regs on Friday, but it seems clear to me that you are correct. So if I'm wrong, we'll probably be cellmates. Naturally, I tell them to consult with their accountant before making any decisions!

[MGB]

The IRS just told ERIC (ERISA Industry Committee) that Notice 2001-61 does not apply to minimum contributions.

I completely disagree with their statement.

[Erik Read]

I just read that the extension does not apply to minimum funding standards. Only to tax form filing deadlines.

[Belgarath]

Grrr! Things like this in the morning make me grumpy. I agree with MGB. This statement is just plain wrong, if in fact the IRS said this. But was it anyone in authority, or some minor knucklehead who doesn't know what is going on?

I can't believe they would win on this in tax court. And further can't believe they would dare (nor should they) to try to apply this - imagine the extended crucifixion by Congress and the media?

301.7508A-1©(1) lists several acts - among them, the making of deductible contributions to certain retirement plans. Under section (4) of Notice 2001-61 Grant of Relief, it specifically grants 120 day postponement "to perform the other acts described in section 301.7508A-1©(1) of the regulations." I don't see how anyone could interpret this to say minimum funding deadline not extended.

If in fact the IRS is taking this incredibly stupid position, we'll have to start calling our Congressmen, and some of the big newspapers. Let's see if an IRS official is willing to be quoted on this one! Whew, I've worked myself into a lather on this...

[Belgarath]

Just saw (but haven't read yet) IRS Notice 2001-63. Do you suppose this is what they were referring to when they told ERIC that it didn't apply to minimum funding? I remain convinced that 2001-61 does apply to minimum funding. Will have to read 2001-63 to see if 2001-63 trumps 2001-61, or merely adds to it.

[Belgarath]

2001-63 is in addition to 2001-61.

[MGB]

The explanation that was given to me is that the IRS has the position that section 301.7508A-1©(1) grants authority to extend the 404© deadline for purposes of getting a tax deduction for contributions made. It does not, however, allow IRS to extend the deadline under sec. 412.

Obviously, this is an interpretation by them; the language of 1©(1)(iii) refers to "making contributions...under section 219(f)(3), 404(a)(6), 404(h)(10(B), or 404(m)(2)." Note that later in the same paragraph, under (1)©(1)(vii), the extension applies to "Any other act specified in a revenue ruling, revenue procedure, notice, announcement, or other guidance published in the Internal Revenue Bulletin." That sounds pretty broad to me.

Although the IRS feels 412 is not covered by this, they are not hiding behind their interpretation - they are working with Congress to try and get legislative relief to extend it to 412. If it does get through, it wouldn't be before next week (no Congress until Friday and they have a few other things to deal with).

[Belgarath]

Thanks MGB - what a waste of energy, for the IRS to take this interpretation of the regs they wrote, and then have to go back to Congress! Oh well, as long as they get some relief through...