IRS Letter - Change in EIN - Need HELP

[Guest Holly Foster]

Yes I did complete item 4 on the original 5500 filed for this plan to show the change in EIN.

The IRS Letter request I received this week says the 5500 was not received and the letter indicates if due to a change in EIN just complete Section I of the letter which is simply company name, address, EIN filed, plan year ending filed with and fax back. But there was one other question in Section I that asks for the date filed with EBSA and Acknowledgement number. Since this form was not filed electronically, obviously it does not have such a number. So I made the mistake of calling the number on the letter - the DOL.

I was told that when there is a change in EIN, that I need to file an amended return for the prior year (2006) checking the box for a final return and showing no participants or assets at the end of the 2006 year and showing all assets transferring to the "same plan" with the new EIN. Then amend the year in question (2007) and check the box for the first filing for the plan. Both these amended returns would need to be filed electronically. Then I was told on the letter, rather then complete Section I for a change in EIN, I should complete Section II and check the box indicating the plan terminated or merged into another plan. I was informed that until I do this, I will keep receiving letters looking for forms on the old EIN, because this is the only way DOL can delete looking for a form on their system! When I later spoke to a supervisor I was told a company can't change their EIN? We have had several of these due to incorporation in another state, change from partnership to LLC, etc.?

I have several problems doing it the DOL way:

1) The year we terminate the plan we would report no assets at year end, but there was never a time without assets in the plan, and the audit report for the year would not match or have reconciling notes to the 5500

2) If we say the plan terminated or merged into the same plan under a new EIN, rather than just a sponsorship change, we may disqualify the plan by not having proper documentation to show such a merger

Not to mention this would be a lot of work!

Has anyone else had this experience?

If so please share your thoughts.

[mwyatt]

Was this just a change in sponsorship entity (say, moving from sole prop to incorporated, C to S?). Think the DOL advise is all wet here since they're referencing termination of plan, which definitely didn't happen.

Did have a client who went through this goaraound in that same year (EBSA screeners completely blew off the info showing prior sponsor EIN on the form). Stick to your guns and write letters. But don't follow the "advise" DOL gave you.

[Bird]

I have several problems doing it the DOL way:

1) The year we terminate the plan we would report no assets at year end, but there was never a time without assets in the plan, and the audit report for the year would not match or have reconciling notes to the 5500

2) If we say the plan terminated or merged into the same plan under a new EIN, rather than just a sponsorship change, we may disqualify the plan by not having proper documentation to show such a merger

Not to mention this would be a lot of work!

Also not to mention that that's not at all what the instructions say to do. Ignore it. I haven't had direct experience but I think I remember hearing that they can't quite handle changes in EIN without thinking that the old EIN didn't file a return. It should go away with one round of correspondence. I guess you just leave the acknowledgment number blank.

[BeanCounterBlues]

I agree w/ MWYATT, all my 5500's from that year (three or so) that showed change in EIN got notices from IRS stating they couldn't find a filing. I wrote letters in each case politely stating that we had in fact filled out the EIN change spec correctly on the 5500, attached a complete copy of the 5500 so that IRS could "find" it and never heard from them again. Unless they plan to re contact me on all of them months / years later.