Required Filing for Employee Benefit & Retirement Plans
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October 24, 2011 |
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For additional information and discussion on this topic, please get in touch with your regular HW&Co. professional or one of our Tax Professionals listed below. Mary Eileen Vitale, CPA, CFP® Ally Brikman, CPA |
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Required Filing For Employee Benefit & Retirement Plans |
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Have you been filing Form 5500s for Employee Benefit Plans and Retirement Plans? Annual Reports/Form 5500s are compliance information returns required to be filed with the Internal Revenue Service in accordance with Department of Labor regulations. Almost all retirement plans including 401(k) and 403(b) plans as well as certain welfare plans including Cafeteria and Section 125 plans must file this return on an annual basis. The Form is due 7 and ½ months after plan year end. On October 12, 2001, the IRS began a compliance project sending out notices to those employers who did not file Form 5500 when due. If you receive a notice for failure to file, you must respond to the IRS within 30 days. The penalties for failure to file and for late filings are quite severe. Employers must pay a late filing penalty of $25 per day until filed, up to a maximum of $15,000. In addition to IRS penalties, the DOL will also hit employers with civil penalties for late filing of up to $1,100 per day, with no maximum. The DOL provides an option for reduced penalties if employers voluntarily participate in its Delinquent Filer Voluntary Compliance Program. Under the program, employers can file the late returns and pay a lower penalty up front, thus preventing the DOL and IRS from assessing any more penalties in the future. If you have any questions regarding Form 5500 or your compliance requirements, please contact Mary Eileen Vitale at (216) 378-7210 or vitale@hwco.com. |
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