ASPPA has received several reports of incorrect Form 5558 acknowledgments being received by plans that had timely filed to extend the filing deadline for their 2017 Form 5500. In some instances, the acknowledgments are reflecting the extension request as relating to an incorrect plan year (e.g., 2007). In other cases, the acknowledgement is reflecting that the extension request was for Form 5330 as opposed to the Form 5500 filing.
ASPPA’s Government Affairs Committee has reached out to the IRS to determine if these are isolated instances or more widespread and whether the IRS can correct these errors without further action by the plan sponsor. Until we receive a response, it is important that plan sponsors read their Form 5558 acknowledgement letters (i.e., CP 216 or CP 232) closely to make sure they are correct. If an incorrect acknowledgment letter is received, the plan sponsor should write a letter requesting reconsideration and providing an explanation regarding the incorrect acknowledgement letter. The letter should be sent to the IRS address listed on the acknowledgement letter, and a copy of the incorrect letter should be included with the correspondence.
IRS will review the request and provide a corrected acknowledgement letter. In no instance should Form 5558 be refiled after the filing deadline.
ASPPA’s Government Affairs Committee will continue follow up with the IRS to determine the cause as well as continue to advocate for electronic filing for Form 5558 to assist in eliminating these issues.
Kizzy Gaul, JD, CPC, QPA, QKA, TGPC, is Manager, Regulatory Supervision, at Prudential Retirement. She also is a member of the ASPPA Leadership Council.