Form 5500 extensions

I don’t know if you’ve run across this, but we had 4 instances of this happening in the last month.

We timely mailed extensions with the IRS. Sent them certified return receipt to IRS, Ogden, UT.

We have documentation of the postage paid:

USPS First class Mail

Certified Mail

Return Receipt

We also have documentation when it left our office and reached IRS office in Ogden.

A month after the extensions were mailed, they were returned to us (unopened).  “Return to Sender. Refused. Unable to Forward” sticker was on the envelope.

Unfortunately, the extensions are now late.

Now what??

If you have proof of mailing them timely, you did what you are supposed to do. It's a PITA, but as long as you did your part the IRS will remove the penalty.  

I have had plenty go missing after being received by the IRS, but I have never had any returned as refused (and I have mailed many thousands of extensions)

Are you 100% sure that you mailed the extensions to the correct address for your method of delivery?

I will be so glad when these silly forms can be done electronically. What a PITA they've been just the last few years.

24 minutes ago, Bill Presson said:

I will be so glad when these silly forms can be done electronically. What a PITA they've been just the last few years.

 

Well, considering the 5330  progress or lack thereof...

Personally, I think that any 5500 filing made by 10 1/2 months after plan year end should be exempt from penalties without anyone having to file for an extension.  There are no taxes paid with the form and the filing for an extension has no filing actions other than its due date.

If a 5500 filing is received after the 10 1/2 months date, then the penalties can be computed using the existing 7 month due date.  (This could avoid needing an act of Congress to implement the change.)

Bottom line... no extension to file, no form to maintain, eliminate a deadline, save time and cost.

If they filed an extension on their business taxes it should automatically extend their 5500 deadline as well.

https://www.napa-net.org/news-info/daily-news/case-week-form-5500-and-automatic-filing-extension