Form 8822-B Poll

[RatherBeGolfing]

(stealing Belgaraths topic to try out the poll feature )

[Larry Starr]

Since the only form on that list that we are concerned with is the 5500, we just  make the change on the 5500 form and indicate it is a change.  I see no reason to add the additional form 8822-B since I don't believe it adds anything in addition.

If the client needs to send the 8822-B for other reasons, that's not our job (I would expect the accountant to do it, but then again, we don't even talk to the client about those issues).

[Mike Preston]

6 hours ago, Larry Starr said:

Since the only form on that list that we are concerned with is the 5500, we just  make the change on the 5500 form and indicate it is a change.  I see no reason to add the additional form 8822-B since I don't believe it adds anything in addition.

If the client needs to send the 8822-B for other reasons, that's not our job (I would expect the accountant to do it, but then again, we don't even talk to the client about those issues).

I think this is a fine modus operandi unless and until the IRS changes the instructions to reflect the fact that no longer will they ignore penalties. Until then, the only risk is that the IRS will make up some rule that allows them to levy penalties retroactively and essentially ignore their own instructions.

BTW, Linda tells me that the 5500 no longer has a mechanism for indicating purely an address change.  Hey, don't blame me I'm just the messenger!

[shERPA]

13 hours ago, Mike Preston said:

I think this is a fine modus operandi unless and until the IRS changes the instructions to reflect the fact that no longer will they ignore penalties. Until then, the only risk is that the IRS will make up some rule that allows them to levy penalties retroactively and essentially ignore their own instructions.

BTW, Linda tells me that the 5500 no longer has a mechanism for indicating purely an address change.  Hey, don't blame me I'm just the messenger!

Yeah, looks like they are setting up for this now that the penalty is material.  Speaking of instructions, I don’t see a “when to file” section in them.  If the penalty is a daily amount, when does the meter start running?

[Mike Preston]

Coincident with event? 

[Larry Starr]

19 hours ago, Mike Preston said:

I think this is a fine modus operandi unless and until the IRS changes the instructions to reflect the fact that no longer will they ignore penalties. Until then, the only risk is that the IRS will make up some rule that allows them to levy penalties retroactively and essentially ignore their own instructions.

BTW, Linda tells me that the 5500 no longer has a mechanism for indicating purely an address change.  Hey, don't blame me I'm just the messenger!

Ooooo... gonna have to check on that; might mean we will have to use the 8822-B.  Why on earth would they have dropped that mechanism??????  Just to piss me off!!!!

[shERPA]

2 hours ago, Mike Preston said:

Coincident with event? 

Maybe, maybe not.  Regardless, if they are going to assess a daily penalty, somewhere they need to define when it is due.  

[Mike Preston]

22 minutes ago, shERPA said:

Maybe, maybe not.  Regardless, if they are going to assess a daily penalty, somewhere they need to define when it is due.  

Agreed. 

[DMcGovern]

Instructions indicate that a "responsible party" needs to report the address change within 60 days of the change.  Would that be the start date for charges?  How would the IRS know the effective date of the change?

As a TPA, we frequently would not be aware of the change within the 60-day time frame.

[Craig Garner]

On 1/14/2020 at 9:10 PM, Mike Preston said:

I think this is a fine modus operandi unless and until the IRS changes the instructions to reflect the fact that no longer will they ignore penalties. Until then, the only risk is that the IRS will make up some rule that allows them to levy penalties retroactively and essentially ignore their own instructions.

BTW, Linda tells me that the 5500 no longer has a mechanism for indicating purely an address change.  Hey, don't blame me I'm just the messenger!

Following up on the ability to use Form 5500 to make a "change of address," the 2019 5500-SF instructions for Line 2a say: Use the IRS From 8822-B to notify the IRS if the address provided here is a change in your business mailing address or your business location.  

[Belgarath]

I'm re-upping this thread. The 8822-B instructions are still from 2019 on the IRS website. While the 2023 5500-SF instructions for line 2a, under the NOTES, still say to inform the IRS via  8822-B for an address change, the 8822-B instructions (2019) still say there is no penalty, and that for a change of address that use of this form is voluntary.

Has anyone seen any new movement/information on this issue?