Three Cheers For Certified Mail

[Andy the Actuary]

Back in 2007, a client (20 or so participants) inadvertently mailed the 5500 to the PBGC. When the IRS notified the client that the 5500 hadn't been received, the client realized the clerical error and immediately mailed the 5500 to the EBSA. A few months later, the IRS issued a notice of assessment of late filing penalties of over $15,000.

The client had submitted all filings by certified mail. We provided the IRS copies of the mailing receipts which confirmed the timeliness of the client's actions. Since the client had a history of always filing timing, the IRS forgave all penalties.

5500 filers will likely never have to demonstrate timely filing. But if they do, having the documentation cements their case.

This is all obvious but you may wish to consider adding to your cover letters that the forms be filed, preferably by certified mail. This blog will self-destruct in 2009 when efast filing is required.

[masteff]

Great story, Andy. Thanks for sharing.

I'm so tempted to print this and send to a former boss who looked everywhere for pennies to pinch and always moaned about postage.

An extra dollar or so per year for certified is really cheap insurance when you look at the bigger picture. That's, what, roughly 7 cents per $1K?