Deadline for amending 5500s

[Guest KennyH]

I can't seem to find anything that specifically addresses my question - Is there a deadline for amending a 5500?

[Flyboyjohn]

No

[Peter Gulia]

Unless the preceding Form 5500 report is so weak that it is not treated as having filed the required annual report (ERISA) or information return (Internal Revenue Code), one doubts that there is a due date for an amended report.

Consider whether an amended report affects a statute of limitations or statute of repose that your client cares about.

[Belgarath]

Interesting point, and I don't know rthe answer to this. Does filing an amended 5500 form restart a new date for a statute of limitations?

[MoJo]

Interesting point, and I don't know rthe answer to this. Does filing an amended 5500 form restart a new date for a statute of limitations?

Well, if I recall correctly, and incorrectly filed Form 5500 is deemed "not filed" for statute of limitations purposes, hence the statute "never runs." Arguably, "amending" a 5500 by definition means the original was not correct, so I would suggest, until the "corrected" amended 5500 is filed, the statute never actually began to run.

[Bill Presson]

Interesting point, and I don't know rthe answer to this. Does filing an amended 5500 form restart a new date for a statute of limitations?

Well, if I recall correctly, and incorrectly filed Form 5500 is deemed "not filed" for statute of limitations purposes, hence the statute "never runs." Arguably, "amending" a 5500 by definition means the original was not correct, so I would suggest, until the "corrected" amended 5500 is filed, the statute never actually began to run.

Interesting. So if the IRS looked at a 5500 that was theoretically past the statute of limitations, but found an error, the statute never really ran to begin with?

[Belgarath]

So if you file a form, and on the "plan characteristics" section you have a typo that gives a 4D instead of 4E, the SOL doesn't start to run, since the form is technically incorrect? Very harsh. Sort of negates the "close enough for Government work" argument for ignoring exceptionally minor mistakes. But perhaps this is more of a theoretical problem than a realistic one? I dunno.

[MoJo]

Interesting point, and I don't know rthe answer to this. Does filing an amended 5500 form restart a new date for a statute of limitations?

Well, if I recall correctly, and incorrectly filed Form 5500 is deemed "not filed" for statute of limitations purposes, hence the statute "never runs." Arguably, "amending" a 5500 by definition means the original was not correct, so I would suggest, until the "corrected" amended 5500 is filed, the statute never actually began to run.

Interesting. So if the IRS looked at a 5500 that was theoretically past the statute of limitations, but found an error, the statute never really ran to begin with?

Technically, yes, but they generally won't look at an old 5500 unless there is a reason (say, they audit a 2012 cash balance form 5500 finding issues, they may then look at the 401(k) plan and go backwards and may find a 5500 error - which then becomes an open issue)

[MoJo]

So if you file a form, and on the "plan characteristics" section you have a typo that gives a 4D instead of 4E, the SOL doesn't start to run, since the form is technically incorrect? Very harsh. Sort of negates the "close enough for Government work" argument for ignoring exceptionally minor mistakes. But perhaps this is more of a theoretical problem than a realistic one? I dunno.

I would agree - in a "minor" situation, it wouldn't necessarily be an issue - although in the specific instance you cite, I can assure you they will look. We have 3 clients being examined by the IRS, and due to an error, the wrong "plan characteristic" code was used for a number of years extending back beyond the "normal" statute of limitations (lack of training, lack of supervision) and the Service is going all the way back questioning the issue and requiring amended return (and there is NOTHING else wrong with them).

[TPApril]

Just looking for thoughts regarding 'minor' infractions - plan was filed with sideways attachments. which situation would increase their exposure to being audited: keeping the filing with the sideways pages or having an amended plan on record. i guess my question is - do amended 5500-s stand out for reason for audit?

[Belgarath]

Mojo - in your situation, was any penalty assessed for incorrect characteristics being listed (or not listed as the case may be) or did they just require the forms to be fixed, with no penalties?

[JanetJ]

On 6/21/2013 at 8:27 AM, MoJo said:

I would agree - in a "minor" situation, it wouldn't necessarily be an issue - although in the specific instance you cite, I can assure you they will look. We have 3 clients being examined by the IRS, and due to an error, the wrong "plan characteristic" code was used for a number of years extending back beyond the "normal" statute of limitations (lack of training, lack of supervision) and the Service is going all the way back questioning the issue and requiring amended return (and there is NOTHING else wrong with them).

I had a 401k plan that I terminated in 2015 for tax year 2014 where I wrote number of participants at the end of plan year is 1 instead of 0 and thus keep getting letters CP214 from IRS asking me to review if i need to file form 5500-ez. So the irs agent told me to amend my 2014 plan to correct that. That was the first and final year that I filed the 5500-EZ does that mean the statue of limitation will start when  I amend this return