What happens if a 5500 is filed late?

Late filed returns are subject to penalties from both IRS and DOL, so it’s very important to identify this mistake before we do. The IRS penalty for late filing of a 5500-series return is $25 per day, up to a maximum of $15,000. The DOL penalty for late filing can run up to $2,529 per day, with no maximum.

What is the extended due date for filing Form 5500?

July 31
File Form 5500 to report information on the qualification of the plan, its financial condition, investments and the operations of the plan. Must file electronically through EFAST2. Due date: the last day of the seventh month after the plan year ends (July 31 for a calendar year plan).

Can you file 5500-EZ electronically?

The 2020 Form 5500-EZ can also be electronically filed using the EFAST2 filing system or filed on paper with the IRS.

Who Must File 5500 EZ?

The Internal Revenue Service (“IRS”) Form 5500-EZ is an annual information return that is required to be filed by every “One-Participant Plan” (owners and their spouses), also known as a Solo 401(k) Plan, with plan asset value in excess of $250,000 as of December 31 of the previous tax year.

When do I need to file Form 5500-ez?

Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan Form 5500, Annual Return/Report of Employee Benefit Plan, if you filed this return because your non-ERISA plan didn’t meet the filing requirements for Form 5500-EZ for plan years before 2009.

What happens if you file Form 5500 late?

Form 5500 Late Filing Penalty Relief. Plan administrators can file Form 5500 electronically with the DOL’s Employee Benefits Security Administration (EBSA) and attach a letter stating reason or cause for late submission. If the DOL and IRS find the cause to be reasonable, plan administrators will be forgiven of the late penalties.

What to do if your 401k hasn’t filed Form 5500?

Employer Z sponsors a 401(k) for its employees and failed to file a Form 5500-series return for the 2015 year. Corrective action: Employer Z can’t correct the failure to file a Form 5500 return under EPCRS. If the IRS contacts Employer Z about its delinquent Form 5500-series return, Z may file the return in response to the letter.

Where to find penalty notice on Form 5500?

The penalty notice is CP 283, Penalty Charged on Your Form 5500 Return. Each plan must be submitted separately. All delinquent returns for a single plan may be submitted together.