EFAST 2 - What you need to know April 22, 2009 Webinar Q&As ftwilliam.com

Transcription

1 EFAST 2 - What you need to know April 22, 2009 Webinar Q&As ftwilliam.com NOTE: Since the broadcast of the webinar we have learned that DOL may be in the process of issuing FAQs on the EFAST system that may address, among other things, the issue of signers with no web/ access. Q: Are wet signatures required for Schedules SB and MB? A: Yes, a wet signature is required. Once signed, you will need to upload the signed version and add it as an attachment to your filing. Q: Do all non Schedule attachment have to be in PDF files? A: They may be either a.txt file or a PDF, however the Accountants Opinion and the MB and SB have to be PDF. Q: What if a client wants access to ftwilliam.com's software (is there an additional charge?)? A: No, there is no additional charge for the web-portal. Q: What are the negatives of IFILE? A: By looking at the Sample data entry screens the user interface appears to be somewhat clumsy and not so easy to use. IFILE does not offer automatic notification to signers and does not provide any workflow management capabilities. It also will not have any batch printing capabilities. Q: Will the software allow for preparation of Schedule SSA (where and how and when does it go)? A: No. The Schedule SSA is no longer included in the 5500 package. Any SSA information for any plan year should be submitted directly to the IRS beginning January 1, A PDF copy of this schedule must NOT be included in the electronic submission of the filing. ALL INFORMATION SUBMITTED TO EFAST 2 WILL AVAILABLE TO THE GENERAL PUBLIC ON THE DOL WEBSITE. Q: Do enrolled actuaries signing Schedules SB and/or MB have to obtain signing credentials? A: Not if they are using a third party software. It is not clear at this time how this will work with IFILE. Q: When will the tentative one time and renewal pricing for your version of EFAST 2 software be announced? A: The price of the new software is announced on January 1 st each year, however, we will announce the price of the EFAST 2 software some time this Summer. We will not charge extra for the web portal capabilities.

2 Q: Is it critical whether capitalization is observed consistently (lower case and/or upper case)? A: No, apparently this is not the case from our knowledge. Q: Can clients return to the site and print a second copy or prior year filings after acceptance? A: Yes. Q: Does the pin belong to the person or the company? A: It belongs to the singer and he/she may not divulge to it to anyone else. Q: On short plan year; I think there is an exception; if the is due before 2010, the government is giving the filer an automatic extension because the DOL really wants the filing electronically. Is this true? A: Yes. An excerpt of the November, 2007 Notice of Revision of Annual Information Return/Reports that explains this is below ( The Agencies expect that, in some cases, filings for 2009 short plan years and DFE filings for 2009 reporting years (e.g., if the DFE year differs from the 2009 calendar year) may be due during 2009 and before the January 1, 2010, date on which the new EFAST2 wholly electronic filing system is expected to become operational for return/report filing purposes. Plans filing for 2009 short plan years and DFEs filing for 2009 reporting years will have the option of using the 2008 Form 5500 Annual Return/Report forms and filing for 2009 under the current EFAST filing system if they file before the date the new EFAST2 electronic filing system becomes operational. Alternatively, plans whose due date for their 2009 short plan year filing and DFEs whose due date for their 2009 reporting year filing falls before the new EFAST2 system becomes operational but who want to file electronically under the new EFAST2 system will be granted an automatic extension until after the EFAST2 system becomes operational in which to file. Q: Schedule E; I think the E questions are on Schedule R, is this the case? A: Schedule E has been deleted from DOL reporting requirements. Q: May more than one person for a company register as a filing signer? A: Yes. Anyone who could sign the current paper 5500 may register as a signer. Q: Where do we set up the that is sent to the client and can we customize the verbiage to say what we want? A: Yes you may customize the as you do with our other batch features. You'll be given a sample letter in the batch, however you may change the language to whatever you want.

3 Q: Regarding extensions, how do you attach a paper extension to the electronic Form 5500? A: You will no longer be required to attach paper extensions. An excerpt of the November, 2007 Notice of Revision of Annual Information Return/Reports that explains this is below ( for those filing on extension or under the DFVC Program, filers would now simply check a box as to the type of extension (IRS Form 5558, Corporate tax extension, special extension) or the DFVC Program. A new space is being added to this line for filers using a special extension, i.e. disaster relief or combat extension, to provide a brief description of the extension. Filers would no longer have to attach a copy of the request for extension filed with the IRS or create a special supplemental attachment to describe the filing under a special extension or the DFVC Program, although they would continue to be required to maintain a copy of any request for an extension filed with the IRS as part of their records. Q: If the TPA or attorney has 2848 Power of Attorney to sign the Form 5500, can that TPA/Attorney sign for the Sponsor/administrator? A: At this time we do not believe that it is possible for a person to sign the Form 5500 under a Power of Attorney. As stated above in the note we believe DOL may address this in future guidance. Q: How does a client obtain their user name and password for ftwilliam.com? A: If the login is available from the TPA's site, you do not need a username and password. We have not worked out all the details as to how this would work but we plan to automate the process as much as possible. Q: Are you going to have the Annual Funding Notice as a form to prepare on your website? A: The annual funding notice was made available this March. It is available on the "Form " page and may be generated in batch mode. Q: Can you print a receipt that shows the DOL has accepted the filing? A: There will be a screen that indicates the status of your filings in a grid for each plan on the system. You will also be able to print a receipt. Q: Can the client edit the Form 5500 when they go to sign? A: Yes. The TPA may enable certain fields to be edited and or answered before signing. Q: Can you lock out the client from editing when they sign? A: The client will be automatically locked out after they sign the Form 5500 filing. Q: Is there an opportunity to enter a backup filer name at our company for the EFAST filing? This is true regarding PBGC e-filings.

4 A: We were unable to find an indication of whether this will be possible. There is some basic information that is transmitted with the forms and there may be a place to include this there. Q: When will clients be able to obtain UserIDs and PINS and by when would you recommend we suggest our clients have this completed? A: We anticipate that you may be able to apply for a user ID and password in early fall of this year. Once this is available/announced, we recommend you have your clients sign up as soon as possible. Some of your clients may not have the means of signing up for a pin so this will give them a little extra time to find a way. Q: How will this work with the Delinquent Filer Program paper or electronic? A: We don t foresee any changes. You will still print what is necessary for the DFVC program. The actual 2009 delinquent returns will need to be filed electronically. Q: What credentials does the TPA need if they do not have a CPA or EA and what user type is the TPA? A: TPAs do not need any credentials unless they are an author in the DOL IFILE system or they are a signer in their own right. Q: What is the life span of the pin? A: As far as we know indefinite unless lost. Q: Are extensions filed electronically or in paper format? A: At this time paper filings are accepted by the IRS. Q: How would you handle an extension that is further extended, such as we had in 2008 for Hurricane Ike, which extended until January 5, 2009? A: There will be a new box to check on the Form. Q: I have a couple of clients who refuse to use the Internet and do not do ! They are operating very successful companies and are just not receptive to going "modern." Is there any way we can sneak in a signature for them, perhaps with our personal address? I can have them sign hard copies of the form 5500, but I know they will never go for electronic filings. A: We have reported many complaints to DOL explaining that not everyone has/wants access to the internet. See note above. Q: Can a personal pin be used at a different company that a person may go to after separation from a company where they obtained their pin? A: The pins are personal and are associated with the signer. Q: If the form is signed by separate individuals one as sponsor and one as administrator, both will need to apply for PIN? A: Yes.

5 Q: Do TPAs have to register as a filing author and a transmitter? A: Author only if using IFILE and transmitter only if writing software to communicate with DOL servers. Q: What if an individual does not have access to an ? A: See Note at the top of the Q&As. Q: We have a client that has 75 plans to file. Is there a way to make it more efficient for the signer? A: As far as we know, batch signing is not possible although we will ask DOL about this situation. Q: Does the accountant's audit report have to have a wet signature? A: Yes and it must be scanned and uploaded as a part of the audit report. Q: Typically, we sent the form to a non-signer who gets a signer to sign. How low can you go with a client signature? A: The paper 5500 form will still need a wet signature and this approach is OK. Filings must still be signed electronically. Q: Calendar plan terminated in 2008, paid out in 2/2009 what do we do in the meantime? A: You have the option to use the filing to terminate the plan - assuming it is terminated before the date the new EFAST2 electronic filing system becomes operational. An excerpt of the November, 2007 Notice of Revision of Annual Information Return/Reports that explains this is below ( Plans filing for 2009 short plan years and DFEs filing for 2009 reporting years will have the option of using the 2008 Form 5500 Annual Return/Report forms and filing for 2009 under the current EFAST filing system if they file before the date the new EFAST2 electronic filing system becomes operational. Alternatively, plans whose due date for their 2009 short plan year filing and DFEs whose due date for their 2009 reporting year filing falls before the new EFAST2 system becomes operational but who want to file electronically under the new EFAST2 system will be granted an automatic extension until after the EFAST2 system becomes operational in which to file. Q: Can you un-invite a signer that is no longer with the company? A: The system will allow any person to sign, however you could revoke their login information. Q: Will your s to the client include detailed instructions on the screens they will be seeing and the actions they need to take?

6 A: Yes, there will be details in the that is sent to the signer. Q: Will 5500EZ information be publicly available? A: One-participant plans that elect to file electronically can use the 5500-SF instead of filing the paper Form 5500 EZ with the IRS. These filers would be required to answer limited data from the 5500SF. However, in lieu of filing electronically using the 5500-SF, one participant plans can elect to file using the paper Form 5500EZ. The Form 5500-EZ will be available from the IRS and will be submitted directly to them for processing. All sf data available on dol we site. The paper 5500EZ will work the same way on our software except there will be no barcode. Q: How will the SAR (Summary Annual Report) be transmitted to the client? A: The SAR may be accessed via the portal and will be available in batch mode as well. Q: I believe you briefly touched on this, but clarification is needed. Will companies still have the option to file 5500's via hard copy physically signing and mail to the DOL or is electronic filling the only option? A: As far as we know no. Q: Our CEO signs the 5500 as the authorized plan sponsor and not sure how we would handle the electronic signature. Any recommendations? A: You can still invite people to login. We are looking for ideas looking for solutions as to how this will be handled. Q: Will plan info transfer from 3 rd party software onto the forms in the DOL site? A: Yes Q: Just to be clear, the client will print the 5500 and sign and just file? A: They will login, print the 5500 (and do a wet signature) and enter the pin. When your client clicks on the button to sign the form will be sent electronically to DOL. Q: If a 5500 for a short plan year in 2009 is due prior to the end of 2009, can a paper 5500 for 2009 be used? A:Yes - this is an option. An excerpt of the November, 2007 Notice of Revision of Annual Information Return/Reports that explains this is below ( The Agencies expect that, in some cases, filings for 2009 short plan years and DFE filings for 2009 reporting years (e.g., if the DFE year differs from the 2009 calendar year) may be due during 2009 and before the January 1, 2010, date on which the new EFAST2 wholly electronic filing system is expected to become operational for return/report filing purposes. Plans filing for 2009 short plan years and DFEs filing for 2009 reporting

7 years will have the option of using the 2008 Form 5500 Annual Return/Report forms and filing for 2009 under the current EFAST filing system if they file before the date the new EFAST2 electronic filing system becomes operational. Alternatively, plans whose due date for their 2009 short plan year filing and DFEs whose due date for their 2009 reporting year filing falls before the new EFAST2 system becomes operational but who want to file electronically under the new EFAST2 system will be granted an automatic extension until after the EFAST2 system becomes operational in which to file. Q: Is there any discussion of these fillings being done like a PERSONAL tax return? The TPA file and just have a "separate" form that the client and TPA has on record? A: Not at this time. The DOL may be issuing FAQs Q: Will ftwilliam.com be providing any client communication that we can merge our client data into and send out, providing them with the information they need to begin this process? A: That is what the web-portal will be used for. Once the filing is completed ftwilliam s a link to your client explaining they will need to sign their filing. All your client will need to do is click on the link, login and print the filing. Once printed, they then may use their pin to e-sign their filing. Q: Since the 2009 form 5500 EZ can be filed on paper but is not part of the EFAST 2 system, can we still file the paper version using the EFAST Bridge? If not, what means will the IRS accept for paper filings? A: We expect that the EFAST Bridge will be available in IRS has not provided a filing address yet. Q: If the plan administrator is the same as the plan sponsor, will they have to sign twice? A: Yes, but our system will only require them to enter signing credential once. Q: Will the system be able to handle corrected/amended forms? What about past years? A: An excerpt of the November, 2007 Notice of Revision of Annual Information Return/Reports that explains this is below ( Also, as provided in the Electronic Filing Rule, delinquent or amended filings for prior plan years for which paper filing options were available also will be subject to the electronic filing requirement.... The Department will provide instructions prior to the inauguration of the system on how those filings are to be made under the electronic filing system....

8 Amended Return/Report File an amended return/report to correct errors and/or omissions in a previously filed and accepted annual return/report for the 2009 plan year. The amended Form 5500 and any amended schedules and/or attachments must conform to the requirements in these Instructions. See the DOL Web site at for information on filing amended returns/reports for prior years. Q: How will Form 5558 be filed? A: You may submit a paper copy. Q: How do we coordinate filing of some forms ( Schedule A or Schedule D for example) are completed by an investment custodian and all other forms are completed by a TPA? A: This would work essentially just like it has in the past. The TPA, investment custodian and others would log in to our site and complete the necessary forms.