The Internal Revenue Service (IRS) doesn\u2019t read the 5500s, but the Department of Labor (DOL) does.<\/p>\n
The problem with asset purchases and existing plans is there will be a change in the plan sponsor and the employer identification number (EIN). The plan sponsor should note this on Form 5500. Yet, so often even if they do, the IRS will send a letter asking for the latest 5500 using the old plan name, employer, and EIN. They will say they don\u2019t have a copy and want one. If you don\u2019t answer the IRS, you might get a penalty for a 5500 you already filed. That\u2019s why I\u2019m convinced that the IRS doesn\u2019t read the filed 5500 forms. From experience, DOL picks up much more information from these Forms as one avenue to audit the plans.<\/p>\n
Yet it\u2019s annoying to have to help plan sponsors answer the IRS when they already did on Form 5500.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" The Internal Revenue Service (IRS) doesn\u2019t read the 5500s, but the Department of Labor (DOL) does. The problem with asset purchases and existing plans is there will be a change in the plan sponsor and the employer identification number (EIN). … Continue reading