Erroneous IRS 1997 non-filing letters - a trend?

[mwyatt]

Has anyone else recently received IRS letters on non-filing of plans for the 1997 plan year? I've received at least four faxes from (worried) clients in the past week regarding non-filed 1997 forms. In all cases these were terminated plans that had filed final forms well prior to 1997 (I have copies of the final filings so we're safe - now all I have to do is talk these prior retired clients off the ledge).

[wmyer]

We get a lot of those, too. Usually the reason is that the "final" box was not checked off on the 1997 form. It appears that because of the three-year statute of limitations the IRS is currently targeting 1997 forms. And targeting non-filers or late filers is an easy way to raise revenue, considering the exorbitant fines.

[mwyatt]

Actually, the first one I received was for a plan that filed its final form (I have the copy in front of me) for the 1989 year! No contact since then from the IRS until this random mailing saying the 1997 filing hasn't been received (also neither have the 1990-1996 forms).

I'm an actuary so I sign Schedule Bs. When the enrollment number prefix changed the last time from 96 to 99, all of my Schedule Bs filed in the first part of April 1999 as part of 5500EZ filings were rejected by Memphis as I (properly) used the new 99 prefix. Turns out they hadn't updated their scanning software in Memphis only (5500C/R filers were fine as Holtsville had updated). Of course, I had four clients who thought I was an idiot.

Just trying to see if other TPAs have noticed an influx of erroneous 1997 non-filing letters. This is a busy time of the year with end-of-year projections and proposals; I don't really have the time right now to deal with erroneous IRS demand letters .

[Fredman]

Not for 1997, but we received some requests for 1998 plan years. Not all for terminated plans. We also have copies, so no big deal...just a pain in the potato.

Funny thing...I received TWO copies of each request. Two envelopes, received same day requesting the exact same thing. Hmmm...

If you don't like IRS letters going to the client, use your address (we use our PO Box) instead of the client's address. Our clients won't even know we received these requests.