Extensions for PYE 1/31/2013

[Rob P]

We filed about 15 extensions back in August for our clients with 1/31/2013 plan year ends. The extensions were correctly filed showing the plan year as 1/31/2013 with the requested extension to 11/15/2013. We just heard from three of these clients who received extension confirmations (one just got it in the mail today). The confirmation is only granting the extension to 10/15/2013 and they are incorrectly showing the plan year end as 12/31/2012.

Has anyone else been having this problem?

Does anyone know of an IRS office that is actually open that we can call?

Any input is appreciated.

[Andy the Actuary]

If reply is available on IRS letter, I'd reply with copy of filed 5558 with the notation from the 5558:"The application is automatically approved to the date in line 2 blah, blah, blah." We comply. Fix your system.

If you are a member of ASPPA, you may want to let them know. They're right on in championing the underdog.

[Rob P]

The clients are receiving the generic extension confirmation letters from the IRS as if nothing is wrong, so there is no reply area. Only the standard customer service telephone numbers and website reference are on the correspondence. I tried calling several different IRS numbers but they are all closed. I am assuming we can get this straighten out but it is not something I really wanted to deal with on October 14th.

I am an ASPPA member and may contact them for advice.

Thanks

[shERPA]

We are getting these too. IRS has made a total mess out of the 5558 process - what is so hard about an AUTOMATIC extension? Sheesh.

[Andy the Actuary]

Those who have created software understand two things (a) the fewer heads involved the better and (b) a better product is engendered when end-users are involved. One has to believe that there are numerous systems analysts and programmers involved a number of whom do not even understand the essence of what they're systematizing. At least, I hope this is true and the evolving problems are not simply a matter of gross incompetance.

[ESOP Guy]

To me it isn't clear why the 5558 aren't just being set up to file electronically like the 5500s and 8955-SSA can be. It would seem like so many of these problems would be solved if that happened.

[Andy the Actuary]

To me it isn't clear why there is a filing required for a request that is automatically approved. Simply, change the filing deadline for all and avoid the paper.

[Rob P]

I hate to say it but I am glad someone else is in this boat too. If it was just limited to us, I think it would have been a more difficult fight. I was confident we would prevail, but I figured it would still be painful.

Note that I followed Andy’s advice and contacted ASPPA yesterday. I spoke with someone on their government affairs staff. They are going to look into the problem, but we were the first they’d heard of this.

Personally, I think the whole extension process is asinine anyway. If this is supposedly an automatic approval process, just do away with the whole thing and make all 5500 due 9½ months after the close of the PY.

[david rigby]

If this is supposedly an automatic approval process, just do away with the whole thing and make all 5500 due 9½ months after the close of the PY.

Good idea, but might not be kosher. Statute (ie, ERISA) defines the due date. IRS has authority (in some cases) to offer an extension up to 75 days.

[Rob P]

Thanks. I am sure it would not be a high priority if I started to lobby my local congressman to get the law changed. Still is very frustrating, but I can always dream.