Statute of Limitations

[richard]

Plan sponsor neglected to file Form 5500 for calendar plan year 1991 and 1992. Oops!

In 1994, this was discovered, and after discussions with the IRS (who were very amenable to the client sending the forms with an explanation), the client sent in the filings. (let's say this was done in October 1994).

Neither the client nor us received any response from the IRS in Atlanta area after the filing was sent it.

As a practical matter, they are most likely fine.

Technically speaking, what is the statute of limitations beyond which time the IRS cannot assess the $25 per day fine. Is is 3 years, 5 years, 6 years, or other? Does it run from when the filing was due, or when the filing was made?

Technically speaking, any thoughts?

[Kathy]

I'm not sure of the specific answer to your question but the statute usually runs from the LATER of the date due or the date filed so the filing in '94 started the statute running.

[Ervin Barham]

As best I understand it, the statute starts with the filing of the Schedule P and runs 3 years from the date filed (in your case), unless (1) you have an undisclosed prohibited transaction, which then is a 6 year period; or (2) a fraudulent return, which then has no statute.

See Code Section 6501(a) and 6501(e)(3). You can do a search elsewhere at this site for those.

I am not an attorney, so check with one before proceeding.

[Guest StanJacobson]

The IRS is usually most cordial in these instances. If your 5500 Series Forms were also to have satisfied the DOL filing requirements, then you must also deal with late filings with the DOL.