Beltane Posted July 30, 2015 Posted July 30, 2015 Maybe some do this as a practice - file 5558's as insurance, even if return may be posted on time. Thinking it may be a wise thing to do in case there are system problems, etc.
My 2 cents Posted July 30, 2015 Posted July 30, 2015 What possible disadvantages would there be? Lou S. 1 Always check with your actuary first!
Beltane Posted July 30, 2015 Author Posted July 30, 2015 That's my question - don't want to cause confusion.
Andy the Actuary Posted July 30, 2015 Posted July 30, 2015 Each June, I file extensions for any calendar year plans whose 5500s have not yet been filed. I want to give IRS time to record to their system. If 5500 is submitted by July 31, extension box is not checked. I do this preventatively for to quote the former St. Louis Cardinals's pitcher, Joaquin Andujar, "I have only one word, 'You never know.' " The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Doghouse Posted July 30, 2015 Posted July 30, 2015 The only issue I found is that we always had clients who wanted to file without extending, and if I filed an extension request, the client would get an acknowledgment directly from the DOL. Then I always had explaining to do (with a sometimes not very happy client) as to why it was filed.
Beltane Posted July 30, 2015 Author Posted July 30, 2015 Can't understand why a client wouldn't appreciate the better safe than sorry approach.
david rigby Posted July 30, 2015 Posted July 30, 2015 I've seen a few sponsors who don't want to file the extension form for fear that it's "one more thing that could trigger an audit". I'm not accusing them of being paranoid; just sayin'. (I'm pretty sure the IRS has said, point blank, that such filing will not in any way influence the occurrence of an audit.) I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
My 2 cents Posted July 30, 2015 Posted July 30, 2015 If it ever did have a possible effect on being chosen for an audit, it probably hasn't since the IRS changed it from an actual request requiring justification and IRS approval to the automatic "send it in by the deadline and you're all set" process it is today. Always check with your actuary first!
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