Responding to IRS Notices-Who Should Respond?

[Guest MS TPA]

There is a difference of opinion around our office as to who should directly respond to an IRS Proposed Penalty Notice for a late filing and input from you guys would be greatly appreciated. Typically (and especially lately) these type issues are resolved by faxing documentation supporting why the filing should not be considered as late. Here's where the difference of opinion comes in-should the TPA respond directly to the IRS on the plan's behalf or should the Plan Administrator respond directly to the IRS....or does it even matter?

[david rigby]

That is a decision for the plan sponsor.

[Guest k.anderson3454]

What does a plan sponsor do??

[Bill Presson]

There is a difference of opinion around our office as to who should directly respond to an IRS Proposed Penalty Notice for a late filing and input from you guys would be greatly appreciated. Typically (and especially lately) these type issues are resolved by faxing documentation supporting why the filing should not be considered as late. Here's where the difference of opinion comes in-should the TPA respond directly to the IRS on the plan's behalf or should the Plan Administrator respond directly to the IRS....or does it even matter?

We leave it up to the employer, but if we respond (and it is something that wasn't our fault) then we bill our time.

[Guest Form5500]

It's the plan sponsor's responsibility to respond but typically the Form 5500 preparer does so on their behalf. Our Firm does not charge for IRS or DOL inquiries that are a result of any Form 5500 preparation we were engaged to do.