5558 filing in July

[pmacduff]

due to the issues last year whereby the 5558 was filed in July and then the 5500 form in early August:

Some Sponsors received letters that the 5500 was late because of the timing of the IRS providing the 5558 information to the EBSA.

what are others doing this year? Are you holding off on the 5500 filing and if so, until when?

I know the issue is easily addressed with the proof of the 5558 filing date, but trying to avoid having the issue to begin with.

any thoughts appreciated.

[Andy the Actuary]

Too late for you to change this year but I filed all 5558s in early June. Better to have and not need than need and not have.

If you filed 5558s at the end of July, suggest given the problems from last year, you may want to consider waiting until October to submit the 5500.

[BG5150]

We also filed our 5558's earlier than in the past this year. We think we will continue this process.

We do have some sensitive clients who refuse to go on extension, and we waited until the last minute if need be.

[Kevin C]

I hate to be the bearer of bad news, but the problems from last year are still with us. One of our clients with a 9/30 year end received a late filing notice yesterday saying their PYE 9/30/2013 5500-SF filing was late and they owe $1,625. The extension was overnighted to the IRS on 4/25/2014 and signed for on 4/28/2014. The 5500-SF was filed on 7/14/2014, one day prior to the extended deadline of 7/15. We had several "approval" letters for extensions last year that were dated more than three months after the extension was filed. It appears that hasn't changed.

I also thought it was interesting that the penalty notice mentioned the deadline and penalties for late filing of the "Schedule SSA" and "Schedule B".

[ESOP Guy]

I hate to be the bearer of bad news, but the problems from last year are still with us. One of our clients with a 9/30 year end received a late filing notice yesterday saying their PYE 9/30/2013 5500-SF filing was late and they owe $1,625. The extension was overnighted to the IRS on 4/25/2014 and signed for on 4/28/2014. The 5500-SF was filed on 7/14/2014, one day prior to the extended deadline of 7/15. We had several "approval" letters for extensions last year that were dated more than three months after the extension was filed. It appears that hasn't changed.

I also thought it was interesting that the penalty notice mentioned the deadline and penalties for late filing of the "Schedule SSA" and "Schedule B".

Yes, they are now sending penalty letters for SSAs. It is a pain because it is often times a separate letter then the Form 5500 letter. So now you get to reply two times instead of once when they are wrong. Oh joy!

[My 2 cents]

I also thought it was interesting that the penalty notice mentioned the deadline and penalties for late filing of the "Schedule SSA" and "Schedule B".

I think the point may have been that the IRS seems to be using the old name for the forms and not the correct new names. How long has it been Form 5500 Schedule SB and not Schedule B? It is at least a few years since Schedule SSA was the name of that form. Shouldn't the IRS late filing penalty notices at least use the correct form names?

[ESOP Guy]

I also thought it was interesting that the penalty notice mentioned the deadline and penalties for late filing of the "Schedule SSA" and "Schedule B".

I think the point may have been that the IRS seems to be using the old name for the forms and not the correct new names. How long has it been Form 5500 Schedule SB and not Schedule B? It is at least a few years since Schedule SSA was the name of that form. Shouldn't the IRS late filing penalty notices at least use the correct form names?

Maybe but the fact I have had to send two letters instead of one when they make a mistake causes me problems. And it is all about me!

[Kevin C]

I could understand a reference to Form 8955-SSA. The IRS notice referred to Schedule SSA, which was removed from the Form 5500 starting with the 2009 filing. Schedule B became Schedules SB and MB starting with the 2008 filings.

[Kevin C]

I forwarded the IRS notice, the extension filed and its delivery confirmation to ASPPA GAC. I would encourage anyone else who has a client get one of these to do the same. They will forward it to the IRS. I don't have much faith in the the IRS actually fixing this any time soon, but I think it's important to keep reminding them they are messing this up and causing problems for us. In my opinion, one erroneous IRS letter to a client claiming a timely filing missed a deadline and will cost them $$$ is one too many. This client has already received two.