Book ADP refund as liability?

[BG5150]

Do you book ADP refunds as a liability on the 5500?

I have an auditor who insists on having the ADP refunds for 2019 booked as a payable on the 5500.

I've never done this. 

What do you guys do?

[Bird]

Prior discussion

You were in on it.  Good point made by Tom Poje about the instructions and entertaining snark from others.

 

[BG5150]

1 hour ago, Bird said:

Prior discussion

You were in on it.  Good point made by Tom Poje about the instructions and entertaining snark from others.

 

That was 5 years ago.  I don't remember what I was doing 5 hours ago. 

[BG5150]

Auditor is booking the ADP refund on the 2019 return and listing it as payable.  So we will just offset 2020's distrib by that amount, I guess.

Like I said in the other thread, I just do what they tell me to do, put the note int he file and move on to next year.  Just was curious what others were thinking about it.

[Bri]

They're not asking for the ADP distributions done in 2020 to be listed on the 2019 5500 as well?  That would at least balance the distributions.

Of course, they could always change their mind by December 31 and do a QNEC.  (That tempers my desire to see it listed as payable, because the expect refund doesn't "have" to be actually paid.)

[Bill Presson]

On 9/25/2020 at 4:15 PM, Bri said:

They're not asking for the ADP distributions done in 2020 to be listed on the 2019 5500 as well?  That would at least balance the distributions.

Of course, they could always change their mind by December 31 and do a QNEC.  (That tempers my desire to see it listed as payable, because the expect refund doesn't "have" to be actually paid.)

Yep. Auditors heads almost explode if you tell them the ADP test won't even be run until after 10/15.