IRS Late notices

[justanotheradmin]

Has anyone else gotten a slew of IRS late notices this past week? I have had numerous clients receive late notices already. They all seem to be in error as 5558s were timely filed, and the 5500s were as well. Some of the notices are dated before the 15th, during the middle of the government shut down. I know much of the notice process is automated, I guess I didn't realize that they would be going out even during the shut down.

Regardless, they don't appear to be correct, and are a pain.

Thoughts?

[Lou S.]

It's been this way since the disconnect between the paper filing of Form 5558 at one IRS loaction and the electronic filing of Form 5500 with the DOL at another location. It seems like they simply can't match all timely filed Form 5558s with properly filed 5500s durring the 2.5 month extension window.

As this is an informational return with an automatic extension if you file the 5558, you'd think if you filed the 5500 with 5558 box checked the presumption from the IRS would be that you actually filed the very simple form but the IRS seems to have a problem properly logging out all the 5558s timely. Until the IRS goes t o electronic filing of form 5558 or decideds not to send out these letter, I'd expect this to be an issue for some percentage of plans each year.

I agree it is a pain in the rear.

[jpod]

If a late letter is dated before the 15th (actually, it would have to be dated before the 16th at the earliest), then it has nothing to do with the IRS' link-up to EFAST; obviously, it is the fault of the IRS computer thinking that no 5558 was filed. The long and the short of it is if you have your certified mail green card for the 5558 you can burn the late letter along with the rest of the junk mail.

[Lou S.]

OK, let me re-phrase. Whatever system they are using to get paper forms into their computer system has some disconnect given the number of notices they send for plans that actually filed a 5558.

And I don't think you can throw the letter in the junk mai, it does unfortuately require a response.

[jpod]

I admit to the liberal use of hyperbole when I said you can burn the late notice, but in my experience with these kooky situations you will eventually receive a "whoops, sorry" letter from IRS acknowledging that you were timely, in which case preparing a response to the late letter is a waste of time (and money if the client is paying someone to prepare it).

[PainPA]

I just had 2 clients receive the late notices. This is becoming a burden as I had a few back in October as well.

This is such a simple process. Maybe it is screwed up because they hired the programmers from the the HealthCare.gov

What do other TPA's do for proof the 5558 was filed?

The one thing I question on our end is that I send out about 20-25 5558's in early July (I do not wait until the end of July with the onslaught they must receive) with a USPS confirm return receipt. How antiquated?

Do others send individually? Do they ask for the client to send a copy of the IRS receipt of the 5558 when they receive the letter 2 months after it was sent in?

Frustrated............