Erroneous Late Filing notices on second listed plan on 5558

[mwyatt]

Think I'm seeing a trend here. Despite instructions on 5558 saying to list multiple plans of sponsor with same PYE, FYE on one 5558 rather than 5558 for each plan extended, now on my third separate sponsor where the second plan listed is being dunned for late filing (first plan in each did receive approval letter, and yes, forms were filed before 10/15/2010 with DOL acceptance). Anyone else running into this situation?

[Guest Form5500]

We've seen this happen for a few of our clients. We've responded back to the IRS with the appropriate documentation and it was accepted. However, going forward we've made a business decision to file a Form 5588 for each plan vs one for all covered. It's easier to track and gives the IRS less leg room to say a plan sponsor did something wrong.

[mwyatt]

Although in our situation we were able to show 5558 showing two plans and approval letter received on first plan (but not second); hard pressed for IRS to argue we didn't file for the second plan. Did hear at the EA meeting that even the old time honored certified letter approach is pointless as it doesn't document what was actually sent in the envelope.

Best solution is for IRS to get a handle on the 5558 processing; error rate last year was unacceptable.