Penalty Relief for 5500-EZ Late Filers

Pilot Penalty Relief Program – Late Annual Reporting for Non-Title I Retirement Plans (“One-Participant Plans” and Certain Foreign Plans) 

The IRS has issued guidance for late filers of the Form 5500-EZ (Revenue Procedure 2014-32).  If you are a late filer, from June 2, 2014 – June 2, 2015, you essentially get a free pass to catch up on your required filings. This Rev. Proc. provides administrative relief to plan administrators and plan sponsors of certain retirement plans from the penalties for a failure to timely file the plan’s Form 5500-EZ.

A few things to note:

  • Relief under this revenue procedure is only available to the plan administrator of one-participant plans and certain foreign plans.  (One-participant plans are defined in the Rev. Proc. 2014-32 in Section 4.02.)
  • There is no limit on the number of filings you can do during this pilot program (i.e. if you have not filed for 8 years, you can do them all).
  • The relief provided by this revenue procedure is not available if a penalty has been assessed with respect to a delinquent return.
  • The form for the actual plan year must be used (rather than a current year form).  Certain plans covered by this Rev. Proc. were required to file Form 5500, rather than Form 5500-EZ, for plan years beginning before 2008.

o   For example, if a 2003 Form 5500 should have been filed for the 2003 plan year but was not, a 2003 Form 5500 must be submitted under this program.

o   To print out electronic versions of these forms, the IRS directs to www.irs.gov/retirement or http://www.dol.gov/ebsa/5500main.html

  • For Defined Benefit plans with Actuarial Schedules before 2005, the Schedule B must be attached (since that was the prior requirement).  For Defined Benefit plans with Actuarial Schedules after 2004, the Schedule B (or SB) is not attached, but a statement must be included indicating the Schedule B (or SB) has been prepared.
  • The applicant must submit a complete Form 5500 series return in order to receive penalty relief.
  • There is no filing fee.
  • To qualify for the late filing penalty relief, only paper filings will be accepted.
  • Each late filing must include a cover sheet, which is a completed paper copy of the Appendix A Revenue Procedure 2014-32 Transmittal Schedule (located in the Appendix to the Rev. Proc.)
  • All returns submitted in accordance with this revenue procedure must be sent to the (relevant) address, as follows:

o   Form 5500-EZ Filings

 Internal Revenue Service

1973 North Rulon White Blvd.

Ogden, UT 84404-0020

o   Form 5500 Filings

Internal Revenue Service

Employee Plans Delinquent Filer Program

EP Classification

9350 Flair Drive

El Monte, CA 91731-2828

o   These filings cannot be filed through the DOL’s EFAST2 filing system. Filings sent to the DOL’s EFAST2 filing system will not be treated as submissions under this pilot program and will continue to be subject to applicable penalties under the Code.

  • This is a one-year pilot program that ends June 2, 2015.

For more information on the Delinquent Filer Voluntary Compliance (DFVC) Program, click here.

If you need assistance with your Form 5500 series returns, please contact us by submitting the form below.

Amanda is the Chief Operating Officer at Pinnacle Plan Design, LLCAmanda Rae Iverson

 

 

 


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Pinnacle Plan Design is a third-party administrator (TPA) for employer-sponsored qualified retirement plans. We specialize in retirement plan design, administration and actuarial consulting for 401(k)/profit-sharing plans, defined benefit plans, cash balance plans, and 403(b) plans. Pinnacle Plan Design proudly serves businesses nationwide.

 

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