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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4093
Experience:  35 years tax experience, including four years at a Big 4 firm.
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What is the correction procedure for unfiled information

Customer Question

What is the correction procedure for unfiled information return 8925?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Notice and Consents were obtained from the insured employees of Employer-owned contracts. However employer was unaware of Form 8925 filing requirement. How does he correct?
JA: Is there anything else the Accountant should be aware of?
Customer: No
Submitted: 1 month ago.
Category: Tax
Expert:  PDtax replied 1 month ago.

Hi from Just Answer. I'mCustomer and can assist.

Expert:  PDtax replied 1 month ago.

IRS does not have a specific remedy for nonfiling. However, they will not impose the taxability penalty, per the IRS as follows, from the Internal Revenue Bulletin (IRB) at https://www.irs.gov/irb/2009-24_IRB/ar11.html:

"A-13. Section 101(j) does not contain a provision for correcting an inadvertent failure to satisfy the notice and consent requirements of § 101(j)(4). The Service will not, however, challenge the applicability of an exception under § 101(j)(2) based on an inadvertent failure to satisfy the notice and consent requirements if the following conditions are met: (1) the applicable policyholder made a good faith effort to satisfy those requirements, such as by maintaining a formal system for providing notice and securing consents from new employees; (2) the failure to satisfy the requirements was inadvertent; and (3) the failure to obtain the requisite notice and consent was discovered and corrected no later than the due date of the tax return for the taxable year of the applicable policyholder in which the employer-owned life insurance contract was issued. Because § 101(j)(4)(B) requires that the employee’s consent be written, failure to obtain such consent cannot be corrected after the insured employee has died."

Expert:  PDtax replied 1 month ago.

Since yo0u have the consents, but simply failed to file, the remedy is filing the form 8925 by the extended due date of the return.

Thanks for asking at Just Answer. Please rate my assistance with positive feedback, as site management uses the feedback to measure our work as Experts. I'mCustomer

Expert:  PDtax replied 1 month ago.

Hi again.Customerhere.

I'm following up to see if I have answered your questions, or if you need any7thing further.

If I have answered your questions, please rate my assistance to close out your request before month end. Positive feedback is appreciated. I'mCustomer

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