2021 Form 5558s being denied

[ktrombino]

Mailed in 59 Form 5558s to the IRS for the 2021 plan year on July 22, 2022, certified mail return receipt.   Now my clients are getting Notices CP216H indicating that they have denied the request for an extension of time because the request was not filed on or before the due date of the return.   I have a copy of my Certified Mail receipt showing the package being mailed out on July 22, 2022.  I cannot get through to the IRS on the phone "due to extreme call volumes" and I should try again tomorrow.  Anyone else getting these denial letters?  Should I resend the entire package again with all 59 forms ?

[chc93]

We just got a few this morning.  We have the certified mail receipts with the list of plans in the packages.  What a pain...

[Nate S]

And that's why ever since 2013, every client goes on extension in June.  Still doesn't help 100%, but it gets the bulk of these out of the way.  Make the IRS earn their keep; a computer may have printed these notices out, but a human has to handle your response.  Draft a form letter response and submit for each one your clients recieve.

[ktrombino]

12 hours ago, Nate S said:

Thanks for your help.

 

 

[Tom]

When oh when will the 5558 be electronically filed?  Should be an easy project for IRS especially when 87,000 new employees get hired.

 

[Lou S.]

19 minutes ago, Tom said:

When oh when will the 5558 be electronically filed?  Should be an easy project for IRS especially when 87,000 new employees get hired.

 

I thought they were working on that for 2023 or 2024. I could be wrong but thought I read that somewhere recently.

I think they are removing the extension of the 5330 from the 5558 and moving it to a different form which will allow the 5558 to filed through EFAST. At least that is my understanding.

[chc93]

I saw this recently... proposal for 5558 electronic filing <highlights are mine>   [edit:  I just saw Lou S. reply]

 

2022-21584.pdf

[Nate X]

Following and also adding that we are seeing approval and denials for Form 5558s that were mailed in the same envelope.

[Bill Presson]

On 10/28/2022 at 6:06 PM, Nate X said:

Following and also adding that we are seeing approval and denials for Form 5558s that were mailed in the same envelope.

Same

[ktrombino]

I just got off the phone with an IRS agent about my predicament.  After faxing him proof of my mailing (Certified mail receipt dated 7/17/2022), sending him a signed 2848 and original 2848, he agrees that my client was sent a Notice CP216H in error and he will be sending out an apology letter soon.   I asked about the other 58 forms from my package and he couldn't help me with those.  He can only handle one 5500 filing per phone call.  There needs to be a better way.

[pensiongeek]

We are responding to each denial letter separately and sending a blanket letter to the IRS with the certified receipt confirmation showing mailing before 7/31.  Has anyone heard any updates from the IRS on these?  

 

[ktrombino]

Are you including a form 2848 with each letter to the IRS relating to the individual denial letters?  Or are you sending the blanket letters as if they were being sent by the plan sponsor?

I have been getting signed 2848s from my clients before contacting the IRS but have only done so for about 5 of my 59 clients so far.

 

 

[TPAinPA]

We've had this happen in the past and it's so frustrating because the client gets the impression we did something wrong.  I've handled it by having a standard written reply faxed to the IRS along with a copy of the extension request.  It's worked every time.