Who can sign 5500?

[Guest idahoerisa]

Can a representative under a Form 2848 Power of Attorney sign a Form 5500, Sch P and/or SSA on behalf of the administrator and/or fiduciary and/or employer?

[JanetM]

Yes the can sign with 2848 POA. It can be used for 5500, 5330, 558 and SS-4. You have to list the form and tax years on 2848 when it is filed.

Question back at you, where is plan sponsor? Does the POA know for sure 5500 is correct and is willing to sign it and P. Am guessing small plan with employer directing investments since they are signing P.

Still begs the ??? where is employer/plan sponsor?

[Lori Friedman]

Just be sure to sign the return in crayon.

[JanetM]

Better yet, disappearing ink.....................

[Guest idahoerisa]

You asked, where is the sponsor? We were in a jam near the deadline with client/sponsor in another state. By use of e-mailed PDF files, we were able to obtain sponsor's original signature on hard copy, which sponsor filed by U.S. mail. We were interested in the POA idea as an emergency backup technique.

I have not found anything official from IRS or DOL stating clearly that POA can sign a Form 5500, or even a Form 1040 for that matter. I still have doubts on the question.

Thanks for your reply.

[WDIK]

or even a Form 1040 for that matter

I think sections 1.6012-1(a)(5) & (6) address the issue of the 1040, including those limited circumstances where authority may be granted to a representative.

I cannot speak as to the form 5500.

[mbozek]

Line 5 of the instructions for the IRS power of attorney form 2848 limits the ability to designate another person to sign a tax return for the taxpayer to situations arising from disease, absence from the US for more than 60 days and other good cause specifically granted by the IRS after a request by the taxpayer. There is no automatic authorizaton to sign a return for another person.

[AndyH]

tax return for the taxpayer

Is a 5500 such a thing?

A DOL rep once told me that DOL's position is that a non for profit 990 is not a "tax return". Why would a 5500 be one?

[mbozek]

I didnt know the DOL interpretated the IRC.

[JanetM]

5500 preparers manual contains the following:

Ch. 25 Form 2848 Power of Attorney

Form 2848, Power of Attorney and Declaration of Representative, may be filed by a plan sponsor of an employee benefit plan or the trustee of a trust to authorize an individual to represent that plan or trust before the IRS and receive tax information. Form 2848 may also be used by other taxpayers or entities to authorize an individual as representative. However, the following discussion applies to employee benefit plans only.

NOTE

Individuals and entities filing tax returns with the IRS are not required to authorize an individual to represent them before the IRS.

The plan sponsor or trustee will often appoint an individual to act on the plan's behalf before the IRS, receive tax information from the IRS, and assist in the preparation and filing of certain required government reporting forms relating to the plan, such as the plan's:

l Form 5500, Annual Return/Report of Employee Benefit Plan

l Form 5558, Application for Extension of Time to File Certain Employee Plan Returns

l Form SS-4, Application for EIN

l Form 5330, Return of Excise Taxes Related to Employee Benefit Plans

This authority is valid only for the type of tax and for the years or periods listed on the Form 2848. The representative may be named for no more than three years into the future. The three future periods are determined starting December 31 of the year the power of attorney is received by the IRS.

Form 2848 and the instructions for this form are included in this chapter at sections 25.03 [[fpm01.sgm][1248]] and 25.04[[fpm01.sgm][1249]], respectively. Many software programs that produce Form 5500 filings can also produce Form 2848. A fill-in Form 2848 in Adobe Acrobat format (pdf) is available at www.irs.gov/pub/irs-fill/f2848.pdf. The fill-in form is easy to use and has a professionally prepared look.

[mbozek]

Janet: I dont understand you post. The sections you cited relate to representation of a plan before the IRS by an agent regarding an IRS form or submisson for qualification or receive information from the IRS, not whether the agent who holds a POA can sign the form on behalf of the plan administrator. I thought the instructions for the 2848 form clearly state the limited conditions under which the agent can sign a tax return for a taxpayer.

[AndyH]

Is a 5500 a tax return filed by a taxpayer?

[mbozek]

The instructions for the 5500 form state that the form must be signed and dated by the plan administrator of a plan subject to ERISA. Whether or not the 5500 is tax form is irrevalent if the PA must sign for ERISA purposes.

[AndyH]

Then I fail to see how the following comment is applicable:

Line 5 of the instructions for the IRS power of attorney form 2848 limits the ability to designate another person to sign a tax return .....

[JanetM]

Mbozek, few years back when I was at CPA firm, we had clients who signed 2848 so that attorney or CPA could sign 5330, 5558, 5500 and payroll returns.

Representing plan was interpreted to include the original filing as well as afterwards if the IRS had question or there was an audit.

[mbozek]

That was then. I dont think that authority exists under the current 2848 to allow a CPA to sign a 5330 form because it requires the payment of a tax for which the s/l begins to run under IRC 6501. In addition the s/l for schedule P only begins to run if the 5500 form is properly fied with the DOL.

Form 2848 also applies to IRS returns and forms that do not require payment of tax such as information returns and submission of plans for a favorable determination letter. See instructions to line 3. In addition the 5500 instructions state that the return must be siged by the plan administrator to comply with the provisions for submitting a return under Titles I and IV of ERISA.