Status of IRS determination letter processing?

[jstorch]

Does anyone know where the IRS is on processing determination letter requests? Their website says that they are currently working on "on cycle" Form 5300 applications postmarked January 2007: http://www.irs.gov/retirement/article/0,,id=150182,00.html

If this is true, they are more than a year behind.

I submitted an on cycle 5300 for a DB plan in early March, 2008. Their confirmation letter said that we normally could expect to hear from them within 145 days. Having yet to hear anything, I called and spoke with an IRS agent today (September 23, 2008) who said it had not been assigned yet and could not tell me when it would be assigned, referring me to the above site. Does anyone have any first-hand knowledge of how long the applications are taking for processing?

[J Simmons]

I have one pending from January 2008, two months longer than the one you mention. Still no response.

[Guest L337pwner5]

You submitted on cycle in March 2008? Just to clarify, that makes it a cycle C plan, correct? We have been receiving comments and letters on a number of our cycle B filings over the past month or so. I wouldn't expect the IRS to get to cycle C plans until late this year or early 2009.

[JanetM]

I submitted 10 docs in A on 1/31/07, received det letter on one of them 4/01/08, nine are still pending. The original examiner of all 9 was reassigned, the packages transferred to new examiner who suddenly retired, and now we are told the 9 have been assigned to 3rd examiner who has yet to get to them.

Submitted 2 docs in B on 1/31/08, other than the receipt from IRS that they received the package I haven't heard a peep from them.

They are VERY behind.

[Guest Sieve]

All my plans are prototype or VS, so I haven't yet submitted any for EGTRRA. So this is the first time I've heard these stories (nightmares?). I do remember GUST FDL applications I subimitted on 1/31/2004 (yes, the absolute deadline!) taking a long time (about a year for initial contact), but I thought that was just because it was a deadline filing. Now, it looks like the IRS can't keep up with its own regular cycle filings. Ugh!!

I never thought the time would come when FDL processing, start to finish, would take longer than VCP processing!!

[JanetM]

I will trade you my control group with all the individually designed plans for all your VS and Prototype. I do have VS that I will get to file later.

[Guest Sieve]

Yes, I'm glad I have no individually-designed plans. Chin up, though--just think how easy those VS docs will be!! Trade? Sorry, Janet, I think not . . . But, I will give you a Billy Martin & a Yogi Berra for an Al Kaline and a Norm Cash!!

[John Feldt ERPA CPC QPA]

A sampling of 5 individually designed defined benefit plans:

Submitted January 30, 2007, a restatement of an existing nonelecting church plan

First IRS request on December 3, 2007: change "separation from service" to "severance from employment"

Favorable letter received on January 18, 2008. 12 months

Submitted January 30, 2007, a restatement of an existing cash balance plan

First IRS request on August 15, 2008: change "separation from service" to "severance from employment"

20 months and still waiting

Submitted January 22, 2008, a new cash balance plan executed 12/31/2007

No response (other than the acknowledgement letter).

Submitted January 22, 2008, a new cash balance plan executed 12/31/2007

Favorable letter received on August 18, 2008, no questions asked. 7 months!

Submitted January 25, 2008, a new cash balance plan executed 12/31/2007

No reply (other than the acknowledgement letter)

[JanetM]

Dang Larry, I don't have any baseball cards. I will trade you some 8-track tapes of Who, Peter Frampton and Heart if you prefer.

[Guest Sieve]

Throw in an 8-track player that works & it's a deal!!

[JanetM]

Sorry, only the reel to reel still works LOL. 8-track died when I rolled the Nova in 1981.

[jstorch]

You submitted on cycle in March 2008? Just to clarify, that makes it a cycle C plan, correct? We have been receiving comments and letters on a number of our cycle B filings over the past month or so. I wouldn't expect the IRS to get to cycle C plans until late this year or early 2009.

Yes, cycle C (governmental plan).

Thanks for all the responses; I suppose it's good to have confirmation that we are not alone in having a long response time.