Extension opinions, please

[doombuggy]

I recently changed r/k firms and moved here to FL. We got hit with Hurricane Charley three weeks ago, and may get Hurricane Frances this weekend. We still have 5500s that we are working on (or waiting on info from various sources).

Does anyone out there know if the IRS grants additional time when you are located in a federal disaster area? I know they did this for those in the NYC area in 2001. Opinions? Or if you know who, where we can contact the IRS to get some info on this topic?

Thanks for your help!

[stephen]

From the IRS Website:

http://www.irs.gov/newsroom/article/0,,id=128465,00.html

IRS Grants Tax Relief for Tropical Storms’ Victims

IR-2004-108, Aug. 16, 2004

(Updated 8/24/04 to add Flagler County)

(Updated 8/31/04 to add incident ending date)

WASHINGTON — The Internal Revenue Service today announced special tax relief for taxpayers in the Presidential Disaster Area that was struck by Tropical Storm Bonnie and Hurricane Charley during the period Aug. 11-30, 2004.

Taxpayers in 26 Florida counties generally will have until Oct. 15 to file tax returns and submit tax payments. The IRS will abate interest and any late filing or late payment penalties that would apply.

“Storm victims shouldn’t be worrying about taxes at a time like this,” said IRS Commissioner Mark W. Everson. “The special tax relief announced today will give people more time to file and pay their taxes.”

The IRS announcement coincides with Aug. 16, which is the national deadline for almost 8.5 million taxpayers who received an automatic extension to file tax returns originally due on April 15.

The disaster area consists of 26 Florida counties: Brevard, Charlotte, Collier, DeSoto, Dixie, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee, Levy, Manatee, Monroe, Okeechobee, Orange, Osceola, Pasco, Polk, St. Johns, Sarasota, Seminole and Volusia. Among the tax relief details:

The Federal Tax Deposit (FTD) Penalty Waiver Period for employment and excise tax deposits is Aug. 11-23, 2004.

The Extension Period for returns and other tax payments is Aug. 11 – Oct. 15, 2004.

The Disaster Designation for this area is “Bonnie/Charley” — taxpayers mark certain relief-related forms with this designation.

Relief Provisions

[doombuggy]

Anyone else? I was looking for info regarding the filing of Form 5500, and not necessarily tax deposits. We have some plans that are on the 5500 extension (5558s were filed), but we are looking to see if the October 15th deadline has been extended for us.

We got some Frances, and are now watching Ivan.

[Guest kangerooster]

This does include the Form 5500. I do not, however, know if the minimum funding due date of 09-15-04 has been extended. Although it would only seem appropriate that does not always matter. Anyone know?

[Guest Taxman]

As of the time of my post, the IRS has indicated that it will extend the due date for those counties affected by Hurricane Frances. Presumably, similar to the Charley extension, it will run from sometime in September to (I'm hoping) to past 10/15 (hopefully 11/15 or at least 10/31). Any return with an original or extended due date falling within that timeframe will have until the end of the extension period to file, which would calendar year 5500s that have been extended with a 5558.

My question is will the DOL also grant such an extension? Recall that IRC and ERISA have concurrent jursidiction, and the DOL's penalties are wholly unrelated to the IRC's penalties. So just because the IRS says the due date is extended, that doesn't mean the DOL agrees. I'm sure the DOL would waive any penalties and interest, but I want to get a firm answer on this before I go telling all my clients we have until 10/31 or 11/15 to file.

[Guest Taxman]

FYI

Spoke to the Office of the Chief Accountant in the DOL which has jurisdiction over such matters as filing deadlines for the Form 5500. The DOL will abide by any extension period granted by the IRS as a matter of administrative practice.

[doombuggy]

This is great news! Our boss has been calling Washington, trying to get some help on this. I will pass this news on to her.

[doombuggy]

I e-mailed the thread to boss lady, and she is asking if anyone knows if the 9/15 min. funding deadline has been extended. We have DB & DC plans (i work on some DCs) here, and she is concerned about the funding deadline next weeks for the DB and MPPs.

All and Any help is really appreciated. Thanks!

[Guest Taxman]

doombuggy

I would review IRC Sec. 7508A(b) for the IRS' authority to extend the minimum funding deadline, but as of yet I don't see that the authority has been exercised.

Also, for your boss, per IR 2004-108 and Rev. Proc. 2004-13:

"Postponements for Presidentially Declared Disasters and Terroristic or Military Actions under Section 7508A

In the case of “affected taxpayers,” as defined in Treas. Reg. § 301.7508A-1(d), the IRS may permit a postponement of the filing of the Form 5500 or Form 5500-EZ. Taxpayers who are unable to obtain on a timely basis information necessary for completing the forms from a bank, insurance company, or any other service provider because such service providers' operations are located in a covered disaster area will be treated as “affected taxpayers.” Whatever postponement of the Form 5500 series filing due date is permitted by the IRS under section 7508A will also be permitted by the Department of Labor and PBGC for similarly situated plan administrators and direct filing entities."

[doombuggy]

My boss lady just got off the phone with some big wigs in Washington. Sounds like they are going to do the min. funding extension until 10/15.

EDIT:

Sandy Turner just got off the phone with Larry Starr & Jim Holland, and look for this to come down from the gov't relatively soon.

[Guest Taxman]

doombuggy

Since the IRS extension period for Frances is until Dec 30, 2004, your boss lady may want to check again, but I'm sure the minimum funding is extended until Dec. 30 also.

[doombuggy]

IRS

Here's a link to get to Notice 2004-62. Min. Funding deadline has been pushed back to October 15. See pages 2 and 3 of the notice for a list of qualifications in order to be eligible for this relief.

Thank you to Sandy Turner for working over the past two weeks to get this relief from the government.