5500 automatic extension - be careful

[richard]

If I read the PWBA Press Release correctly, it is clear that the 7/31/00 deadlines that would normally apply for calendar year plans is extended to 10/15/00 without the need to file for an extension.

Be careful that they are NOT extending an 8/31/00 deadlines (for 2/1/99-1/31/00 plan years) to 10/15/00 without the need to file for an extension. These plans still must filed for extension; of course, the extension can be to 11/15/00.

This caveat also applies for 3/1/99-2/29/00 (deadline 9/30/00) and for certain short plans years as well.

[Guest David Dye]

It is my understanding that a plan with a PYE 1/31/00 or 2/28/00 will also have until 10/16/00 to file the 1999 Form 5500, without the need to file Form 5558 extension request.

However, if the plan wants the full 2½-month extension to file, then filing Form 5558 will be required (by the normal due date). For example - a plan with PYE 1/31 would normally have to file 5500 return by 8/31, or file extension request by that date. This year, the plan with PYE 1/31/00 has until 10/16/00 to file 5500 return (no 5558 extension needed). If the plan files 5558 extension by 8/31/00, then the extended due date is now 11/15/00.

Likewise, a plan with PYE of 2/28/00 has until 10/16/00, or it can file a 5558 extension by 9/30/00 and extend the due date to 12/15/00.

Note that a plan with PYE of 12/31/99 CANNOT file a 5558 and extend the due date beyond 10/16/00. Also note that the extended date is 10/16/00, not 10/15/00 (10/15/00 falls on a Sunday).

[Chester]

David, I disagree. The automatic extension only applies to plans whose normal filing deadline falls on or before 7/31/00, and for short plan years that ended in 1999. For a plan year that ends 1/31/00, the normal filing deadline is 8/31/00, so a Form 5558 would have to be filed to extend this deadline.