5558

[Guest ppighost]

Does anyone have experience with denials of late 5558 forms? We typically mail by regular mail. Today, we received two denials the IRS claims are late. We can't prove because of regular mail, but they were mailed timely by 4/28/03 to extend to 7/15/03 for 9/30 year ends. Any advice?

[Guest ElKH]

Wow . . . that's scary . . . did either, or both, of the clients extend the time to file their corporate returns? If so, you have an automatic extension for the 5500, and maybe you should just include a copy of the 7004 or 8736 with your 5500 filing to cover yourself since your 5558s were rejected . . .

If they did not file for an extension on the business return . . . plead (via certfied mail) . . .

[Guest ppighost]

It sure is scary. It makes you think maybe you should file by one of the delivery services so you at least have a bill copy to rely on. Now there is no defense. Thanks for the reminder about the corporate returns.

[WDIK]

I have never understood the purpose in having a requirement to file an application for an "automatic" extension where (as is the case with Form 5500) no tax payment is due. Perhaps it is the prospect of penalties?

Sorry for the rant, but this is one of my pet peeves.

[david rigby]

Earlier I stated that the corporate tax extension might not be sufficient to substitute for the form 5558.

http://www.benefitslink.com/boards/index.p...ST&f=67&t=19849

However, I am unsure if that is still a true statement. Anyone know?

[Guest ElKH]

I can respond in a "seat of the pants" fashion . . . we have relied on the magical corporate tax return extensions in the past. As a matter of fact, it is only as of the 2001 plan year that we decided to file 5558s by default, regardless of what was happening at the corporate/partnership end of things.

To the point . . . there are just some things you can't do administratively without a finalized partnership/corporate tax return . . . so, let's say your client finally gets you what you need on September 13, and maniacally sends the profit sharing contribution to the trust by September 15 . . . what? You're expected to slap the 5500 together in, say, 48 hours? I like to view that extra month between September 15 and October 15 as the "grace" period for procrastinators . . . and our clients who have relied on the corporate or partnership extension as an excuse to file on October 15 have never had their hands slapped.

[Blinky the 3-eyed Fish]

First, my understanding in the same as Pax's in that while you can use the extension to the entity's tax return in lieu of a 5558, whether it be a partnership, corportation, etc., the 5500 would be due by the extended due date of that entity's return.

A partnership would have no issue in relying on their extension since their return can be extended to October 15 for a calendar year partnership. However, since a corporate extension goes only to September 15, I am surprised the IRS/DOL has not made an issue with someone using a corporate extension and filing after September 15. I certainly wouldn't try this and would file for the 5558 if I needed the extra month. (Actually we file a 5558 for all clients who might have 5500 sent in after the first due date regardless of if their entity return is being extended.)