correction of EIN on 5500s

[thepensionmaven]

What is the correct procedure to follow when a client realizes he has filed a 5500 under the EIN of the trust?

[ESOP Guy]

The one and only time I had this happen we filed a form under the correct EIN.  When we got the letter about the form being late.... We showed them we filed an exactly identical 5500 timely except for the EIN.  We explained why the new EIN was correct.  

We never heard back from the IRS.  That was early last fall.  

I can't cite anything to say that is the right method.  It is simply what we did.  

[mming]

Not sure there is a stated procedure, but I'm sure you've already considered amending the return to show the correct EIN (which certainly would be one way to go). 

When a 5500 is not filed for a plan, the IRS is usually pretty good about sending a letter asking why a return wasn't filed.  If the IRS cross references EINs when they make such a determination, one could expect them to believe a filing wasn't made, prompting them to send such a letter.  The letter would allow you to explain what happened and, upon providing them a return with the correct EIN, should end the issue without any consequences.  Perhaps someone who is familiar with which variables the IRS uses to isolate non-filers can comment.  Regardless, it wouldn't surprise me that most people in your position may choose to not take any action since even if IRS correspondence should arrive, it would appear to be a simple fix without further repercussions.  

   

 

 

 

[thepensionmaven]

In this case, IRS has not cross referenced, even though item 4 was completed, issued the client a penalty letter for one EIN, which they reduced (somehow) for a late filing on the amended return.