Alternative 10-Year Amortization Extension

[Brian Haynes]

I represent an employer that contributes to a multiemployer pension fund.  The fund wants to utilize Revenue Procedure 2010-52 and submit an application to the IRS for a 10-year amortization extension.  In connection with that application, the fund is asking my client to send directly to the IRS certain financial information about the employer.  My client is concerned about maintaining confidentiality of its financial information (it is closely held) and wonders whether it should decline to provide the information so that the fund enters critical status where the trustees have some better options for addressing the funding shortfall.  Does anyone have any thoughts on this?  Thanks.  . 

[Effen]

If they are applying for the 10 year extension, it looks like the financial disclosures are required if you are a "principal employer".  Following is a excerpt from 2010-50:

Quote

For purposes of this revenue procedure, the principal employers are those employers who (1) are directly represented on the applicant board of trustees, (2) made five percent or more of the total contributions to the plan during the preceding plan year, or (3) for the current plan year, are required to make five percent or more of the total required contributions under the collective bargaining agreements relating to the plan for which the extension is requested. Each of the principal employers must submit the latest available annual financial report of the employer and each of the other entities included within the controlled group of which the employer is a member. This submission must include at least the balance sheet, profit and loss statement, cash flow statement, and notes to the financial statement. Recent interim financial reports for each of the controlled group members, if available, must also be submitted along with an interim financial report covering the corresponding period for the previous year. If the employer submits financial reports to the Securities and Exchange Commission, these reports must be submitted for the same period as the annual financial report. Preferably, the financial report should include certified financial statements. If certified financial statements have not been prepared, an uncertified report is acceptable. If neither certified nor uncertified reports are available, a copy of the company’s latest available federal income tax return, including all of the supporting schedules, must be submitted.