Late 5500s - how to handle the undue stresses and strains of meeting t

[thepensionmaven]

Any thoughts on how to handle the undue stresses and stains of meeting the October 16th deadline??

Any thoughts on mailing the forms after October 16th.

One org seems to think we can attach a letter to the 5500s stating the profound lateness of the software as an excuse for a late filing; while another org says they spoke with DOL and there is "no way" they will issue an extension-- they would rather see incomplete forms than no forms.

Go figure.

[richard]

The letter you describe might work.

I'd prefer filing an incomplete 5500. If it bounces, then I'd use the letter. If it doesn't bounds, then make an amended filing later on.

The DoL has said in public forums they'd be lenient. What lenient means is anyone's guess. Also, if being lenient means backing off after they send a nasty letter to the client, I'd have a different definition.

[Greg Judd]

Originally posted by richard

The DoL has said in public forums they'd be lenient.  What lenient means is anyone's guess.  Also, if being lenient means backing off after they send a nasty letter to the client, I'd have a different definition.

richard - love it!

Just imagining your post in the 401k lottery thread, with this kind of bite added....

[Guest spritcha]

The DOL issued a press release stating that there will be no further extension beyond October 16. The same release urged filers to submit reasonable cause statements with late filings (the same practice as currently available to avoid penalties). The DOL indicated that the federal government will not assess penalties for employers that have "good faith" filing difficulties during the transition year to the new forms.

[R. Butler]

At a 5500 preparer's workshop put on by Corbel, the speaker indicated that the DOL is unlikely to assess penalties on any 5500 filed by the end of the year.

[Guest J_Cira_70]

There is a press release on Benefits Link that discusses this very situation. Evidentally, Leslie B. Kramerich, Acting Assistant Secretary for PWBA announced that the agencies are encouraging filers who will be unable to meet their deadline to attach a statement to their filing explaining the reasons for the delay.

More information can be found at:

http://benefitslink.com/pr/detail.php?id=20124

Good luck!

[Guest wlank]

Just received the following from my document provider. Don't know if it is true or not.

YOU MAY FILE AFTER THE OCTOBER 16 DEADLINE FOR JANUARY PLANS

WITHOUT PENALTY. THIS IS TRUE IN SPITE OF THE REFUSAL OF THE DOL TO EXTEND THE DEADLINE FOR LEGAL REASONS.

SHOULD ANYONE HAVE HAD ANY DOUBTS ABOUT THIS POSITION, DOL HAS JUST PUBLICLY ANNOUNCED CONFIRMED THIS "UNOFFICIAL" EXTENSION.

IN ORDER TO TAKE ADVANTAGE OF THE EXTENSION, YOU SHOULD ENCLOSE A COVER LETTER WITH EACH LATE FILED FORM, AS FOLLOWS:

TO: PWBA

FROM: [YOUR COMPANY]

RE: LATE FILING

THIS IS TO INFORM YOU THAT THE ATTACHED FILING WAS NOT COMPLETED IN TIME TO MEET THE REQUIRED DEADLINE FOR FILING. WE WERE UNABLE TO MEET THE DEADLINE BECAUSE OF UNEXPECTED DIFFICULTIES OBTAINING THE NECESSARY SOFTWARE.

SIGNATURE

[thepensionmaven]

We called the DOL hotline number Friday and spoke at length to a Mike Auerback specifically about any filings that couldn't possibly make the October 16 deadline.

After telling me how lucky I was that I was given an automatic extension from July 31st to October 16 (at which point I told him I didn't get HIS point--the extension is automatic and thanks for the favor), I specifically asked him how late a "late" return could be filed without incurring any penalties.

He just hemmed and hawed and refused to answer, until I pinpointed... a week, 10 days, a month, 6 weeks??

We ended the conversation by his admitting that a return filed within 30 days of the October 16 deadline would not incur any penalties.

Whew!! Like drawing blood from a stone.

[John A]

From Oct. 6:

Agencies Respond to Requests for Extension of Form 5500 Deadline

The U.S. Department of Labor’s Pension and Welfare Benefits Administration (PWBA), Internal Revenue Service (IRS), and Pension Benefit Guaranty Corporation (PBGC) today announced guidance for employee benefit plans who are unable to file timely Form 5500 Annual Returns/Reports. The guidance is being furnished in response to requests to further extend the filing deadline.

After careful consideration of requests for a second extension of the Forms 5500 and 5500-EZ filing deadline, the agencies concluded that any further extension of the filing period would present significant processing issues. In March, the agencies granted an automatic extension to Oct.16, 2000 for those filers with reporting due dates on or before July 31, 2000. The agencies indicated at that time that they do not intend to impose late filing penalties for the 1999 Form 5500 or 5500-EZ in cases where, despite a good faith effort to meet deadlines, filings are delayed because of transition year difficulties.

With the approach of the October 16 filing deadline for many plans, Leslie B. Kramerich, Acting Assistant Secretary for PWBA, said that “the department recognizes that new forms, a new filing system and delays in form-related software have presented challenges for many 1999 Form 5500 filers. It is our goal to facilitate compliance for this transitional year, not penalize good faith efforts of filers to deal with these challenges.”

To this end, Kramerich announced that the agencies are encouraging filers who will be unable to meet their filing deadline to attach a statement to their filing explaining the reasons for the delay. “Where a statement establishes reasonable cause for the late filing, the agencies will not take any further action solely as a result of the late filing,” Kramerich said.

The extension of time to file the Form 5500 and 5500-EZ discussed above does not operate as an extension of time to file the PBGC Form 1. Information relating to the PBGC Form 1 is available at http://www.pbgc.gov. or by calling 1-800-736-2444.

Additional information about the automatic extension is available on the PWBA’s website at http://www.efast.dol.gov. Questions about Form 5500 filing requirements should be address to PWBA's EFAST Help Desk at 202/219-8770.

[Guest Paul]

I agree with all the comments that the chances the government will assess a penalty for a late Form 5500 this year is not that great. My comment has to do with requesting the penalty be abated. If the forms were late because of software problems OK. But some people seem to be suggesting you use that excuse no matter what. I am always concerned about making statements that are no accurate.