IRS: Don't fill out optional question on 5500 for 2015

[BG5150]

IRS says "don't answer them!

https://www.irs.gov/Retirement-Plans/IRS-Compliance-Questions-on-the-2015-Form-5500-Series-Returns

So, yay.

[Peter Gulia]

Will the software permit a filer to answer the questions if the filer wants to?

[Tom Poje]

currently FT William you can.

[GMK]

Hey! What part of the command "should not complete these questions" don't you understand?

Besides being held up to ridicule, you could be subject to as-yet-unspecified monetary penalties for disobeying the rules.

I'm with BG ... Yay!

[Peter Gulia]

Some clients ask for advice about whether volunteering optional or additional information might help support a statute-of-limitations defense or a laches defense or argument.

Advice could include reasons for furnishing information and reasons for not furnishing it.

Tom Poje, thank you for the practical information about one software application.

[GMK]

One person around here thought of the possibility that the form might not be accepted on e-filing, but she and I both think that that's an unlikely event. And if there is a formating problem, just erase the unwanted answers and re-file.

As to having records for future defenses, it would be interesting to know if the computer will read the answers and file them when they are provided, or if the computer will simply ignore those questions and any answers provided.

In any case, it's probably wise to prepare to answer the questions next year.

[Bird]

Let's agree that any discussion on this is a waste of time. Trying to read anything into it is silly; they basically blew it and admitted it and we should move on.

When we first got the forms, I made a bad decision and said we (our office) would be good boys and girls and answer the Qs, unless it was a final return. Then some of the questions were causing questions to be raised about how to answer them and I realized it was an utter and complete waste of time and said we would NOT do it any more. Then the announcement came saying don't answer them.

And...just being obsessive, if the instructions read as ASPPA says they read...

IRS Compliance Questions. New Lines 10j, 14c, 14d, and new Part IX (IRS Compliance Questions) were added to this Form for purposes of satisfying the reporting requirements of section 6058 of the Code. The IRS has decided not to require plan sponsors to complete this question for the 2015 plan year and plan sponsors should skip this question when completing the form.

...how could they change from referring to "Compliance Questions" to "question" (no "s")? It's sloppy. Maybe I'm just in a bad mood from dealing with moronic brokers but it irritates me.

[Tom Poje]

FGC-

I've actually file close to a dozen answering at least some of the questions (all before the IRS made their latest announcement) and they have all been 'accepted'. the term FT William uses, though probably 'received' might be a better term. to me accepted implies more, like the form was actually reviewed and met the smell test.

It is not like the answers are going to change. the serial number of the restatement isn't going to change.

and I love the question "Did plan pass coverage"

what are you going to do if it failed? Answer NO? and still file, and not fix the problem before filing?

I'm still not sure why everyone makes such a big deal of it. Every time we restated a plan I filled that info into a user field (we use Relius) and now with one touch of a button I generate a report that gives me all I need to fill out almost everyone of the compliance questions. certainly I can't say I'm spending that much extra time to fill out the question, which was, from all the 'griping' one of the main reason for being against all this.

[NJ Mike]

Bird -

Our office made the same decision as yours. So now we are not answering the questions either. However, we are still filling in the preparer information even though that is optional.

Mike

[BG5150]

Of all the questions, I would leaver preparer blank. Why announce to the world your client list?

[Tom Poje]

ah, but that is a non compliance question, in a separate section on the form.

at least in the case of our office, there seems little reason for this question. we manually sign all the forms.

at least with FT William, when e-filing, I have to enter preparer name (not of the form 5500 but simply the log in. and then enter the DOL code. so they already have all that info (and more than what is asked for the form)

so maybe they will realize that and remove that question (at least for those manually signing)