June 9, 2014

IRS Updates Delinquent 5500 Filer Programs

A delinquent filer voluntary compliance program (DFVCP) was initiated jointly by the Internal Revenue Service and Department of Labor in 2002.  The purpose of this program is to encourage both pension and welfare benefit plan administrators to file overdue Form 5500s with reduced civil penalties for voluntarily complying with the annual reporting requirements.

The IRS announced that late filing penalties will be waived for certain 5500 filers who:

  • Satisfy the DOL’s DFVCP requirements for the Form 5500 or 5500-Short Form; and
  • File a paper version of the Form 8955-SSA with the IRS for the same delinquent tax year filing.  The Form must then be mailed to the IRS by the latest of 30 calendar days following completion of the DFVC filing, or December 1, 2014.

Additional information about the IRS penalty waiver is available on its website.

New Penalty Relief Program for Delinquent 5500-EZ Filers

The IRS has also initiated a pilot penalty relief program for Form 5500-EZ filers. The types of plans eligible for waiver of IRS penalties due to delinquent Form 5500-EZ filings are:

  • Non-ERISA plans covering only a 100% business owner or one or more partners, and their spouses (no common law employee participants); and
  • Plans maintained outside the U.S. primarily for non-resident aliens (foreign plans) subject to IRS annual reporting.

This pilot program is scheduled to run from June 2, 2014 to June 2, 2015; although, it may be extended permanently.  Additional information about this program can be found on the IRS website.


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