Correcting Late or Missing Form 5500s Filings for Non-ERISA Covered Plans

For plans not subject to ERISA, failure to timely file an Annual Report Form 5500 (“Form 5500”) may subject the plan sponsor to statutory penalties of $25 per day, up to a maximum of $15,000 per plan, assessed by the Internal Revenue Service (“IRS”). Non-ERISA covered plans include one participant plans and foreign plans. Both are required to file a Form 5500-EZ. The Penalty Relief Program (“PRP”) provides relief for those plans not covered by ERISA that must file a Form 5500-EZ. See Revenue Procedure 2015-24, June 15, 2015.

The IRS requires a completed paper copy of the Form 5500-EZ (Form 5500-SF may not be used for this purpose), including all schedules, along with a copy of a Form 14704 (transmittal) mailed to the IRS. At this time, the IRS does not have a system for accepting electronic filings. Plans that received a penalty assessment notice (Form CP 283), are ineligible to participate in the correction program.

Please feel free to contact us if you need advice about late filings.

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