3/15 is Sunday...ADP refunds taken by 3/16 ok?

[jkharvey]

I can never remember this one for refund purposes. Is the first business day after the 3/15 deadline sufficient?

Thanks

[mbozek]

IRC 7503 provides that when the date for performing any act under the IRC falls on a Sat, Sunday or holiday the act shall be considered to be timely if it is performed on next day which not a Sat, sun or holiday. So the 3/15 deadline would be extended to 3/16.

[david rigby]

Prior discussion.
http://benefitslink.com/boards/index.php?/topic/41577-refund-due-date/?hl=7503#entry178896

[Bird]

Curious that the concluding post on that thread was by *_guest named mjb* who said:

We have had this discussion before and it boils down a rejection by the Tax Court of the IRS position in 83-116 that the extension of time permitted by 7503 applies only to the collection or refund of taxes, e.g., filing of a tax return. See E-B Grain Co v. Commissioner of IRS, 81 TC 70 and Synder v Commissioner of IRS, TC Memo 1981-216.

[Tom Poje]

according to the IRS newsletter in 2008, when March 15th fell on a Saturday, there was no extension (despite the idea that there is always an extension if the day falls on a Saturday or Sunday. the IRS did note some items were extended to Mar 17 in this newsletter, just not the ADP refund)

see page 9.

maybe they have changed their mind since then, but they didn't send me a newsletter indicating such.

(and remember, I'm half crazy for saving a bunch of this stuff when I find it)

irs newsletter 2008.pdf

[Belgarath]

So here's my approach, being generally disinclined toward potential confrontation with the IRS:

Who wants to fight with the IRS, even if you use MJB's approach and are ultimately proved right? Do the refund by the 15th. If by some accident, lack of time, whatever, you don't get it done until the next business day, you treat it as done timely if that would have been your approach anyway. If the IRS disagrees, you can fight it out, and you are no worse off than if you had taken that position to start with.

[mbozek]

Just how is the refund going to be made by the 15th since the PO is closed? Is the refund going to be made by EFT to the participant? Will FED ex pick up? The purpose of allowing an extension until the next business day is because the official means of submitting the documents, forms, payments cannot be made when the PO is closed.

[BG5150]

Git 'er done by the 13th. Charge the client for the rush job if need be.

Side note:

Has anyone heard of this ever being a problem? March 15 has come on a weekend 7 times in the last 18 years:

2014

2009

2008

2003

2002

1998

1997

Surely if it was a big deal, there would have been some noise about it....

[My 2 cents]

Or the 13th! On the defined benefit plan side, it is known that quarterly contributions (or final contributions, for that matter) don't get any extra days when the deadline falls on a weekend. And for those, that means making the wire transfer by Friday if there is no real mechanism for doing it over the weekend.

[Belgarath]

"Just how is the refund going to be made by the 15th since the PO is closed?"

You will make the refund by the 15th if you do it on any day up to the 15th, inclusive. If the PO is closed on the 15th, you make sure it is done no later than the 14th. If the PO is closed on the 14th, you make sure it is done no later than the 13th.