8955-SSA IRS Notice CP283C

[stormoj1]

We started receiving IRS notice CP283C it seems because we included Part III entry code "D" in our counts on line 6a & 6b. We are now being assessed $64 for each "D" that was included in our 6a $ 6b counts. Can we amend the 8955-SSA removing the "d" listings from our 6a & 6b counts and asking for an abatement of the penalty? Is there any other way of handling?

Thank you for any help.

[BG5150]

Known issue now. The IRS will send rescission letters in a couple weeks.

ASPPA just sent out a GAC alert:

Approximately 4,000 plan sponsors have recently received notices that erroneously inform them that the IRS is assessing a penalty due to their “filing a late or incomplete” Forms 8955-SSA.

ASPPA GAC spoke with a representative of the IRS on Friday, August 16, 2013. The representative stated that there was a programming issue at the IRS that caused these plan sponsors to receive the notice in error. (He also stated that an additional 200-300 plan sponsors properly received the notice.)

According to the representative, the IRS will send a letter to the plan sponsors that received the notice in error. The letter, which should be sent out in approximately two weeks, will inform the plan sponsors to disregard the erroneous notice and that no further action is necessary on their part.

If a plan sponsor would like to address the issue directly with the IRS prior to receiving the letter, he or she may call the IRS helpline at 877-829-5500. According to the IRS representative, the erroneous penalty will be abated during the telephone call. In addition, the IRS will send the plan sponsor a written confirmation of the abatement in the mail.

© ASPPA 2013

[Tom Poje]

never mind, the masked cape man beat me to the response, if indeed that is what the issue is.

The instructions for the SSA only call for penalties for not reporting someone or for not reporting changes in the plan status (e.g. change in address, etc.)

you have me curious where they came up with $64.

[BG5150]

We had one penalty letter that was for $83.14.

edit: and FWIW: this came a few months ago. We wrote to the IRS on behalf of the client saying we filed on time, and they abated the fee. (Actually, they refunded the fee b/c my client (after admonishments from me not to) sent a check in before we got it straightened out.)

[austin3515]

So I just got one of these today. The letter is dated 10/28/2013 (today is only the 23rd) so that is the first anomaly. They tell us the form is either late or incomplete (but won't tell us which, so thanks for that). We reported one A and one D, both are completed correctly. Line 6a correctly indicates 1 participant reported. I'm wondering if the D has triggered the letter based on the OP, but again we only put one on 6a. And the form was filed on 10/9th.

Knowing they have had problems in the past I do wonder if this is also something that can be ignored. Has anyone else received this in the last few days? I wonder if the filing was transmitted timely and they just didn't process it on their end until after the 15th. Nothing would surprise me. Probably the same IT outfit responsible for Obamacare

[ESOP Guy]

So I just got one of these today. The letter is dated 10/28/2013 (today is only the 23rd) so that is the first anomaly. They tell us the form is either late or incomplete (but won't tell us which, so thanks for that). We reported one A and one D, both are completed correctly. Line 6a correctly indicates 1 participant reported. I'm wondering if the D has triggered the letter based on the OP, but again we only put one on 6a. And the form was filed on 10/9th.

Knowing they have had problems in the past I do wonder if this is also something that can be ignored. Has anyone else received this in the last few days? I wonder if the filing was transmitted timely and they just didn't process it on their end until after the 15th. Nothing would surprise me. Probably the same IT outfit responsible for Obamacare

I have noticed the odd date issue before on IRS letters. My guess (and it is a guess) is they are making sure you really have the 30 or 60 days to reply from the date of the letter by adding days for the mail. The Post Office is just being quicker then the IRS guess.

[Guest jmherisa]

Your best approach to ANY IRS letter indicating a penalty or problem, even if you are sure that everything from your end (i.e. the plan sponsor's end) was done correctly, is to prepare and send an immediate letter of response to the IRS, signed by the plan sponsor. Do not assume the IRS will realize their mistake. I found earlier this season, even after the "known" problem was announced about the erroneous 8955 penalty letters, that I had clients receive erroneous 8955 letters in September for a slightly different reason (specifically, the timing of the actual 8955 submission in early August was filed too soon after the 5558 in late July). I almost led some of my clients astray when I was thinking they should "do nothing" about the 8955 penalty letter since surely they would receive another IRS letter to disregard the erroneous notice. Well, that second letter never came and we were able to submit a response to the penalty notice letter in time. Another option is the plan sponsor can call the IRS customer service line (indicated on the IRS penalty notice) to pursue the matter, which usually never works well since inevitably at least one person on the call (either the plan sponsor, or the IRS representative, or both) have a good understanding of the situation.

[austin3515]

That;s funny, because the IRS publicly said it could be ignored last time due to a programming glitch. I tried calling the IRS but the wait time was "longer than 15 minutes" (probably catching up from the shutdown ). I'll be trying again...

It's been a week since I got the letter. I have to give you a little bit of a hard time for your emphasis on "immediately." As if I should drop everything and spend 2 hours writing a letter to the IRS about a $68 penalty when they give me 30 days to respond

[Guest jmherisa]

Point taken austin3515! Forget I said "immediately." As long as it's prior to the response deadline.

[Andy the Actuary]

My Mom used to say, "Son, no hurry. When you get a chance, I need you to do . . . " This meant if I were having open heart surgery, they should stitch me up so I can get to her request.