File 5310 in advance of termination date?

[cathyw]

Is there any problem with filing Form 5310 now, with a plan termination date of 12/31/17?  A law firm ceased operations on 1/31/17 and all lawyers and staff moved to another firm.  But the shareholders (and two administrative employees) are still around collecting receivables, etc.  They set a plan termination date of 12/31 but fully vested all employees as of 1/31/17.  They want a termination date of 12/31 so that they can make a final profit sharing contribution based on salaries they will take out by year end from the receivables.  But they don't want to wait to first file the 5310 in 2018.

Will IRS entertain an application with a prospective termination date?

Thanks

 

[Mike Preston]

Should be no problem.  But ultimately it is up to the IRS and with government in flux who is to say that past practice is a good indicator of future action?  I'd tell the client that I think it will be fine but caveat it just enough so that if the IRS changes its procedures the client doesn't get mad at me.

[My 2 cents]

Odds are that, if there are any snags (including snags you warned them about),  the client is going to get mad at you whatever you do.

[Mike Preston]

Sigh.  So true.