5500 Inquiry - 9 years later

[LMOC]

Plan Sponsor received a notice of a change to the 5500 and a fine for a 5500 filed 9 years ago. Is there maximum amount of time the IRS can go back and change a 5500? I was thinking it was 7 years record retention or 3 years.

[My 2 cents]

Plan Sponsor received a notice of a change to the 5500 and a fine for a 5500 filed 9 years ago. Is there maximum amount of time the IRS can go back and change a 5500? I was thinking it was 7 years record retention or 3 years.

Do you mean that this happened recently? That is, sponsor filed the 2005 Form 5500 when it was due, followed by 9 years of deafening silence, followed by an IRS-imposed change and a fine? Really?

[LMOC]

Yes, the Plan Sponsor received the letter yesterday. It is actually an off calendar year end Plan, so it was for - 9/30/2006 PYE. There have not been issues with late filing. They are charging $900 if they don't respond of course. The IRS said it made changes, but didn't say what changes were made.. They are sending me the letter so I can read everything. This is so odd.

[jpod]

Sounds like a scammer to me.

[LMOC]

Uhmmm....I'll review the letter and see. But, how far back can the IRS go on changing a 5500?

[Belgarath]

I agree with Jpod, although obviously don't know. $900 seems like a strange number for something supposedly this old, also. I'd wait to see the letter, and see if it really is the IRS and what it is really all about.

[jpod]

Since when does IRS make "changes" to a 5500? They either threaten you with penalties because it is incomplete in some fashion, or they pull the plan for examination. That's what is suspicious to me.

[LMOC]

Exactly! It was so odd to me. Thanks for the information.

[Griswold]

Generally the IRS would only go back three years, six if there's a substantial understatement, or forever if it involves fraud.

But yeah, this sounds fishy.

[Mike Preston]

I'd love to see a redacted copy of what you get from your client. 99 and 44/100 % likely a scam.

[BG5150]

I'd love to see a redacted copy of what you get from your client. 99 and 44/100 % likely a scam.

Me, too, please!

[Tom Poje]

maybe the same folks who call me at home from "Windows" and "Dell" telling me they noticed my computer has a virus, and they can fix it for a modest fee.

[LMOC]

HI All,

I will post it today.

Very interesting letter.

[My 2 cents]

To be on the safe side, you might want to look up a proper IRS number to call and use that number to see if this is legitimate. You will probably not want to try calling any numbers shown on what nearly everyone here feels may be a scam. If it is, the IRS probably wants to get this contact investigated.

Given the strained resources the IRS currently has, investigatory reviews of 2005 Form 5500 filings appear to be most unlikely!

[jpod]

Did the client save the envelope it came in? That could be interesting too.

[GMK]

and copies to the FBI ... maybe?

[Bill Presson]

Anxious to see this!

[CTipper]

Does the letter have a number on it "CP220"?

If so, it's probably from the collections branch. They're possible catching up on old fines.

[My 2 cents]

Does the letter have a number on it "CP220"?

If so, it's probably from the collections branch. They're possible catching up on old fines.

Seems as though it must be too late - what is the statute of limitations on paying fines? Surely not forever!

[AndyH]

Is there a letter?

[BG5150]

HI All,

I will post it today.

Very interesting letter.

Did you post it here? I do not see it.

[LMOC]

Hi All,

Sorry, crazy day today. I know all of you know how that feels. It does say, CP220. When we called, they said it was a legitimate claim and that letters had gone out every year since, but the client has not gotten them. We were told there is not a statue of limitations on the penalty for late filing.

I think CTipper is right, they might be catching up on old fines to get some money in.

I couldn't get the client name and info darkened out enough, but I'll try again so I can post it.

[jpod]

Does the letter actually use the word "fine." If so it is a scammer.

[BG5150]

I couldn't get the client name and info darkened out enough, but I'll try again so I can post it.

White Out.

[TPA2015]

An advisor forwarded a copy of a CP220 letter that his client received, which reflects a substantial fine.  The client is currently with another TPA firm and filed their 2014 5500 in 2016 after receiving an initial notice, but they did not file under DFVC.  They filed the 5500s for other years in a timely manner.

At this point, is the main option available to the employer, a letter regarding the difficult circumstances that resulted in the late filing in the hopes of reducing the penalty?

[Mike Preston]

Just file under dfvcp now.