IRS User Fee Funding Waiver

[Andy the Actuary]

While this seems like an easy question, I'm having difficulty identifying the current IRS user fee to request a 430 funding waiver (which I've never before done). Any help would be appreciated.

[david rigby]

I think it is either $14,500 or $9,000, contained in Rev Proc. 2008-8.

http://www.irs.gov/pub/irs-irbs/irb08-01.pdf

Caution: fees may change on January 1, 2009.

[Andy the Actuary]

I think it is either $14,500 or $9,000, contained in Rev Proc. 2008-8.

http://www.irs.gov/pub/irs-irbs/irb08-01.pdf

Caution: fees may change on January 1, 2009.

I just found it as well in a lovelier form: http://www.irs.gov/irb/2008-01_IRB/ar13.html#d0e14745

$14,500 !!!!

A.Y.F.K.M.?*

*I apologize for the implied use of profanity on a public website. But come on -- Nothing like imposing an additional financial hardship on an employer trying to deal with the pain of a financial hardship!!!

[mwyatt]

Curious as to whether anyone has convinced a small plan client w a NRA < 62 to fork over $9,000 for the IRS ruling.

What's that old law firm phrase "punitive billing"? Looks like the IRS may be trying to scare off some folks with these types of fees, especially w/ smaller plans.

[Guest tomc]

Curious as to whether anyone has convinced a small plan client w a NRA < 62 to fork over $9,000 for the IRS ruling.

What's that old law firm phrase "punitive billing"? Looks like the IRS may be trying to scare off some folks with these types of fees, especially w/ smaller plans.

Has there been any update of the fees for a small plan?

[GMK]

A.Y.F.K.M.?*

*I apologize for the implied use of profanity on a public website. But come on --

"Are you finished kicking me?" probably doesn't need an apology, but otherwise I agree.

[Peter Gulia]

If an employer doesn't get a funding waiver and the plan's Form 5500 truthfully reports that the employer did not pay in contributions needed to meet the required funding, what does the IRS or EBSA do?

[david rigby]

... what does the IRS or EBSA do?

I think the IRS expects the PA to pay a 10% excise tax.

[Peter Gulia]

But if the employer hasn't filed a return to self-assess the excise tax, is the IRS computer smart enough to generate something that causes the IRS to pursue the excise tax?

[david rigby]

Good question. I'm not one to subscribe "smart" to an IRS computer.

My understanding is that the 10% excise tax is due immediately, so if the ER waits until the IRS asks for it, they may impose some penalty and/or interest. Due dates on page 2 of the Form 5330 Instructions, http://www.irs.gov/retirement/article/0,,id=200959,00.html