PMZJohn Posted November 15, 2019 Posted November 15, 2019 Have just recently had 3 or 4 different clients who are 12/31 PYE get notices from the IRS stating that their Form 5558 for 02/28/19 has been denied. Extensions were filed for the 12/31/18 PYE for these clients, and their respective 5500s were filed timely. No extension was ever submitted for these clients for a 02/28/19 PYE. Anyone else encountering this, or am I just really lucky?
Larry Starr Posted November 16, 2019 Posted November 16, 2019 5 hours ago, PMZJohn said: Have just recently had 3 or 4 different clients who are 12/31 PYE get notices from the IRS stating that their Form 5558 for 02/28/19 has been denied. Extensions were filed for the 12/31/18 PYE for these clients, and their respective 5500s were filed timely. No extension was ever submitted for these clients for a 02/28/19 PYE. Anyone else encountering this, or am I just really lucky? Yes, they had a problem in the processing of the extensions in the service center in (I believe it was) Kentucky. I think we have covered this in an ASPPA item in the newsletter. Bottom line: if all they are saying is that it is not approved but you filed timely, then just ignore it. If you did use the extension, I think there was a method given for handling this (but I don't remember what it was; my employees can probably find it if no one else volunteers the info). At least IRS recognized they had some sort of SNAFU on this. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
PMZJohn Posted November 19, 2019 Author Posted November 19, 2019 Thanks. I didn't see anything from the IRS, which is why I asked here. It's easy enough to explain to clients that a large government bureaucracy screwed up, especially when you can point out the error. If it ever actually becomes a real issue that requires further action, I'll ask for the correction method they gave.
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