The IRS last updated IRS Form 5558 in January 2008 as part of a change to automatically approve the extension. The IRS is currently working on an updated Form to be released later this year, in part to accommodate the EFAST2 Filing System.

Form 5558 Procedures Change discusses how the procedures were again changed in January 2009:

Without much fanfare, the rules changed again in January 2009. When Form 5558 is filed, the plan sponsor is receiving IRS correspondence which states the following:

• We have received your Form 5558, Application for Extension of Time to File an Employee Plan Return, for the return (form), plan number, and tax period identified above, and have approved your request. We have extended the due date to file your return to (IRS inserts mo/day/year).
  
• It is important to attach a copy of this letter and a copy of your Form 5558, Application for Extension of Time to File an Employee Plan Return to your return when you file it. It will show the Department of Labor (DOL) that we granted you an extension of time to file your return. If a copy of the extension and notice is not attached to the return, it could be processed as a late filed return.
  
• If you have any questions, please call us at the number shown above, or you may write us at the address shown at the top left of this letter.
  

IRS advises that this procedure was implemented in January 2009. When EFAST2 (the fully electronic filing system) starts up in January 2010, filers will not be required (or allowed) to attach copies of Form 5558 to their electronic filings, so IRS is improving how it tracks Form 5558 filings. This new procedure includes sending acknowledgement letters to filers.

This will undoubtedly cause some re-thinking of procedures currently followed by service providers with regard to delivery of signature-ready Form 5500 reports. We urge practitioners to follow the instructions in the IRS correspondence to alleviate future correspondence from DOL.

UPDATE 4/7/08: ASPPA's Government Affairs committee has received confirmed with the IRS that the requirement to attach the acknowledgement letter to the filing is an error and will be removed from future letters.

We also discussed additional IRS Forms 5500 issues in Extended IRS Forms 5500 Due Date/Filing an Incorrect IRS Form 5500.