5558 Filing Problem

[Disco Stu]

We recently filed 5558 forms for two clients. The forms were sent USPS, with a return receipt attached. Due to an error in calculating the postage, the package was returned to us, postage due. The timing of the return has me a little perturbed. The package was originally posted on 7/11. It was not returned to us until 8/8. We are resending the forms today.

What are the chances that these forms will be considered timely filed? There are now two sets of machine printed postage on the package, the first of which is dated 7/11. My understanding is that the delay in the package being returned would have been caused by the IRS' delay in refusing it. I realize we made the error in applying postage, but this long delay in getting the package back seems unreasonable.

More importantly, should I wait until these clients get late filing notices before pursuing a course of letter writing with the IRS? Or perhaps would it me more appropriate to include such a letter with the 5500 when it is actually filed?

Thanks for any input.

[SLuskin]

We recently filed 5558 forms for two clients. The forms were sent USPS, with a return receipt attached. Due to an error in calculating the postage, the package was returned to us, postage due. The timing of the return has me a little perturbed. The package was originally posted on 7/11. It was not returned to us until 8/8. We are resending the forms today.

What are the chances that these forms will be considered timely filed? There are now two sets of machine printed postage on the package, the first of which is dated 7/11. My understanding is that the delay in the package being returned would have been caused by the IRS' delay in refusing it. I realize we made the error in applying postage, but this long delay in getting the package back seems unreasonable.

More importantly, should I wait until these clients get late filing notices before pursuing a course of letter writing with the IRS? Or perhaps would it me more appropriate to include such a letter with the 5500 when it is actually filed?

Thanks for any input.

I would call the 5500 help line 1-866-463-3278. Get the full name of the person you speak with. Rather than guess, they will be very straight with you. Whenever I call them, I don't give the name of the client, but I do give my name and firm name.

[K2retire]

If the issue was inadequate postage, there would not be a question of the IRS refusing the package -- it never got to them in the first place. Processing any special handling takes the post office a long time, whether it is a return, forwarding, or a return receipt, because it must be processed manually rather than by their usual automation.

When you call the IRS as S Luskin suggests, don't get into a discussion about why or how they delayed the process. It will only hurt your cause.

[Guest Sieve]

And, remember--if it applies--that, in any event, you get an automatic extension to file the Form 5500 until the due date, as extended, for filing the employer's income tax return if the plan year and the tax year are the same and if a tax return extension had been granted & used.

[Disco Stu]

If the issue was inadequate postage, there would not be a question of the IRS refusing the package -- it never got to them in the first place.

That isn't my understanding of how the USPS handles short paid postage. The label on the package indicates that it was refused by the addressee. Though I do agree that haranguing them about this delay isn't likely to help my cause.

Thanks for all the responses.