What This Notice Means
A CP232D tells you the IRS denied your request for more time to file Form 5330, Return of Excise Taxes Related to Employee Benefit Plans. Your Form 8868, Application for Extension of Time To File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans, didn't say why you needed the extension.
No reason, no extension.
What to Do
Where you stand depends on the calendar.
- Before the return due date: file a corrected Form 8868 with a stated reason, or file Form 5330, by the return due date.
- After the return due date: complete, sign, and file Form 5330 and pay any taxes owed immediately.
A Form 5330 filed after its due date is considered late. Late filing or late payment penalties may apply. Don't let a fixable paperwork problem turn into a penalty problem.
If You're Already Late
Get the return and payment in. Once that's done, you can request removal of penalties if you had reasonable cause for the delay. Support the request with records, not just an explanation.
Know Your Filing Requirement
Review the filing requirements for your organization in the IRS retirement plan resources. They also include general information on employee benefit plans.
Questions
The IRS has a phone line for employee plan questions, with personal assistance on weekdays. Keep a copy of this notice and everything you file in response. You can authorize a representative to handle this for you using Form 2848.
Next Year
Sign and mail Form 8868 with the reason you need an extension, on or before the due date of your return.
If your plan's Form 5330 extension was denied and you want help with what comes next, call us at (813) 229-7100.