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Linda T. Fisher 5500 Consulting, LLC Newsletter
Keeping You Informed!
November 2012
Greetings!

Since our October newsletter, we have been through several major events, including Hurricane Sandy and the presidential election, to name a few. I have heard many stories of bravery and survival in regards to the hurricane. On a personal level, my days before, during and after the triple-play storm were consumed with listening to the video updates from New York Mayor Bloomberg and New Jersey Governor Christie along with the news media to coach my daughter, who lives in Lower Manhattan, through her first hurricane. She stocked-up on survival items like food, water, a flashlight, batteries, etc. but after the major blow,  she had to leave her apartment due to her power going out, and therefore, no water could be pumped up to each residence. Thank goodness for the kindness of a few friends who lived in areas that did not lose power to take her in for 5 days. I hope any of you who were impacted by Hurricane Sandy can also be thankful for a safe outcome. Wishing everyone a warm and festive upcoming Thanksgiving holiday!

 

We continue to provide Form 5500 related government updates in addition to providing helpful articles. We know that you likely have more responsibilities than just Form 5500 preparation, so to keep you in the loop, we are providing 5500 related guidance directly to you! Stay tuned each month to learn about:

  • Solutions to Common Errors;
  • Dept. of Labor and IRS Updates;
  • Specific Schedule Guidance; and 
  • Training Offerings!
Did you miss any prior Newsletter issues? 
Click Here to catch up.
   
Pass this newsletter along to others that will benefit!! 
 
"Top 10 Form 5500 Practice Pointers" Free Webcast - Listen to Recording from September 10, 2012 at HR.com 
If you missed this webcast, you can still benefit from listening to the full recording. Learn how to avoid common errors and misconceptions in regards to filings before they are submitted. 
  • Learn which items are of greater importance to the DOL and IRS;
  • Improve your ability to perform effective quality reviews for each filing type;
  • Understand what is required on Schedule C for indirect compensation;
  • Feel more confident when working with Form 5500 filings to proactively move completion along;
  • What is new for 2012; and 
  • Avoid the Top Five Form 5500 Red Flags.
We Can Assist With Form 5500 Preparer or Reviewer Training!


Save time by turning the training task to us!
 

We know that effective Form 5500 training is hard to find. We can train you and your team on a variety of Form 5500 topics. Whether you have an experienced team that just needs to brush-up on new changes since last year, or you have new Form 5500 preparers that need the full training package, let us know. 
 
Is Schedule C still an area of confusion? We can assist with training that will get you on the right track for very low cost.
 
Are you a Form 5500 reviewer that is ultimately responsible for your filings'  accuracy but don't have a good understanding of what it all means? We have an excellent Reviewer Training session that addresses the more important line items and potential red flags.  
 
You and your people deserve to know more!  Click for more about our training offers! 
In This Issue
Hurricane Sandy Government Issued Extensions
Additional EFAST2 FAQ's
Form 5500 Record Retention
 Hurricane Sandy Government Issued Extensions
On November 2, 2012, the IRS and DOL announced certain extensions and tax relief measures to individuals and businesses that were affected by Hurricane Sandy. 

  

The relief includes the filing of the Form 5500 series return, but does not extend the deadline for

information returns in the W-2, 1098, or 1099 series, or for Form 1042 or 8027. 

 

In addition, the IRS will work with any taxpayer who resides outside the disaster area but whose books, records, or tax professional are located in an area affected by Hurricane Sandy.


The IRS announced that it is granting additional tax relief to individuals and businesses affected by the storm in Connecticut, New Jersey and New York by postponing certain tax filing and payment deadlines that would otherwise be due from October 26, 2012 to February 1, 2013. "Affected individuals and businesses will have until Feb. 1, 2013, to file these returns and pay any taxes due. This includes:
  • Fourth quarter individual estimated tax payments, normally due Jan. 15, 2013;
  • Payroll and excise tax returns and accompanying payments for 3rd and 4th quarters usually due on Oct. 31, 2012, and Jan. 31, 2013, respectively; 
  • Tax-exempt organizations required to file Form 990 and Form 5500 series returns with an original or extended deadline falling during this period (Oct. 26, 2012 - Feb. 1, 2013); and
  • PBGC Premium payments due between Oct. 26, 2012 and Feb. 1, 2013 will be treated as timely if made on or before February 1, 2013, although applicable interest will be charged.
Resulting interest, late-payment or late-filing penalties that would have otherwise applied will be abated (except for PBGC interest as indicated above). The IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits that would have been due on or after the location was declared a disaster area, and before Nov. 26, 2012, so long as the deposits are made by Nov. 26, 2012. 

As the damage areas are further assessed, it is anticipated that the IRS will offer additional guidance to employers. Click Here for updates based on your state.
Have You Noticed Additional EFAST2 FAQ's?

For those who don't have extra time to regularly search the DOL and IRS websites for newly posted information, no worry - we are here to keep you informed! Here is an update. 

 

It appears that the EFAST2 FAQ's were recently expanded to include questions 47 - 53. These new FAQ's address the type of correspondence to expect after you submit a Form 5500 filing, emails versus paper.  

 

Department of Labor

Here, the DOL states that, at this point, all of their Form 5500 related correspondence will be sent to the Plan Administrator via email. The email address they are sent to is the one that the plan administrator used when signing up for his or her EFAST2 electronic signature. If the alternative signature option was used, where the service provider signed for the Plan Administrator, then emails are being sent to the signing service provider and must be communicated to the Plan Administrator. Therefore, it is very important that the DOL has the most current email addresses.

 

Take note - with all of the Spam emails being sent, DOL emails will come from "[email protected]." You may want to put this email address in your computer 'Contacts' records so these emails are not directed to your spam folder. Also, if you are not receiving these emails consistently or have a problem with opening their PDF attachments, you may request a fax or paper copies by sending an email to [email protected]

 

Internal Revenue Service 

The IRS  is still sending correspondence on paper, since they are not allowed to send emails, as a matter of current requirements. So if you receive a suspicious email that claims it is coming from the IRS, FAQ 52 recommends that you send it to "[email protected]." You may also call the IRS Customer Service number at (877) 829-5500.

 

Click Here to link to all EFAST2 FAQ's

Form 5500 Record Retention
 
How long are we required to retain Form 5500 filings and all of the information collected to support them?
 
ERISA dictates reporting and disclosure requirements for qualified retirement and health and welfare plans. Plan Sponsors are required to retain records that support all of the reporting and disclosure information for a certain period of time, including the Form 5500. Even though it may direct Plan Sponsors to retain these records, if you prepare Form 5500 filings for your clients or your own company, you are ultimately responsible to uphold these record retention rules.
 
Government reports, such as the Form 5500, and the information collected to support each filing are required to be retained for at least six years after the filing date. For example, a 2011 filing which was submitted on or before October 15, 2012, should be retained until October 15, 2018 which is almost seven years following the actual plan year-end (12/31/2011). 
 
Here are a few examples of information that should be retained and was likely used to prepare a Form 5500:
  • Financial records: trust statements, expense support, accrual back-up, etc.;
  • Nondiscrimination testing results;
  • Record-keeping reports;
  • Participant loan support (balances, defaulted loans, interest paid);
  • Payroll records to support contributions;
  • 1099-R's to support distributions;
  • Insurance contract back-up; and
  • Non-monetary and other indirect compensation.

Records can be stored electronically as long as they can be provided on paper, upon request. 


We would love to hear from you! Your comments and questions regarding this newsletter and future topics are important to us!
Click here to provide your feedback!
 
Sincerely,
 

Linda Fisher
Linda T. Fisher 5500 Consulting, LLC
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Our Mission
Linda T. Fisher, owner of Linda T. Fisher 5500 Consulting, LLC  has prepared and managed Form 5500 filings for 18 years and serves as a technical resource for fellow employee benefit plan professionals and plan sponsors that prepare their own filings. 
 
She is fully aware that as employee benefit laws change, it becomes challenging for plan sponsors to keep current with all filing requirements. 
 
Our mission is to educate all those responsible for Form 5500 preparation and review. We do this through our preparation services, offering training programs for both preparers and reviewers, along with 'as needed' coaching.