So you thought you were all caught up on annual-report tasks when you filed your Delinquent Filer Voluntary Compliance Program form with the U.S. Department of Labor?
Well … not exactly.
Some plan sponsors that filed under the DFVCP may still find themselves with tasks to complete before Dec. 1.
Bottom line: Avoiding Form 5500 penalties for late filing is now a two-step process, one to satisfy DOL and another for the IRS.
IRS has been busy with Form 5500 guidance, most notably Notice 2014-35, released May 9, about penalties for late filing of some forms with the agency. It said IRS would now require separate filing of a paper Form 8955-SSA in order for Title I ERISA-covered late filers to avoid financial penalties. The filers that are eligible for and meet the DFVC Program’s requirements typically submit annual Forms 5500, 5500-SF with the DOL.
IRS will coordinate with DOL to determine which late filers are eligible for this relief; plans need not file a separate application for relief with IRS, the agency said. However, they must file an annual report separately with IRS.
The notice also said that non-Title I ERISA filers that use Forms 5500-EZ or 5500-SF, for plans without employees, are not eligible for the notice’s penalty relief. These filers were covered in Revenue Procedure 2014-32, released at the same time, which relates to Form 5500-EZ for one-participant/100-percent business owner-spouse plans.
Plan sponsors will have to file these applicable forms with IRS on paper by the latter of Dec. 1, or within 30 days of the DFVCP filing.
Hopefully, you have already competed the Form 8955-SSA and filed it in a safe spot waiting for further guidance. If you haven’t completed that form, you have more work to do!
To read the complete story on Thompson’s HR Compliance Expert, click here.