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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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Question A taxpayer mailed thru regular mail form 5500EZ for

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Question: A taxpayer mailed thru regular mail form 5500EZ for 401-K plan in time; the Plan Assets are less than $ 100,000. The DOL claims not to have received the mail and the client sent them a copy of the form 5500EZ. They do not accept it and are imposing a penalty for late filing. What are the options available to the client defend the penalty claim ?
Submitted: 7 years ago.
Category: Tax
Expert:  Robin D. replied 7 years ago.


Thank you for using Just Answer.

Only the IRS may assess penalties on Form 5500-EZ. The Employee Benefits Security Administration does not have any jurisdiction over Form 5500-EZ, cannot assess penalties against delinquent Form 5500-EZ filings, and therefore cannot include them in their DFVC Program. The IRS, however, will consider any "reasonable cause" statement submitted explaining why the return is late.

A copy of the notice should be sent to Ogden, along with a statement why it is believed the notice was sent in mistake. Always include a telephone number and best time to call, in case an IRS representative needs to follow up.


If it is believed the return was timely filed submit:

  • A copy of the CP 213 Notice,
  • Any appropriate supporting documents, and
  • Evidence that the return was timely filed or a reasonable cause statement.

    I sincerely XXXXX XXXXX information is helpful,

    Customer: replied 7 years ago.

    I have done the above and explained that the return was timely filed with another Defined benefit plan return which they seem to have received. However, the agency claims to have received the Plan 2 -401-K -5500EZ on the date copy was mailed to them as evidence and reasonable statement and maintain that the penalty stands. I will appreciate if you have any other defense as this has been already tried.


    Do you have any reasearch for the reporting requirements of 401-K that says single member plan with less than $ 100,000 in assets are not required to file the form 5500.

    If there is proper research on IRC citation, it will help.


    Expert:  Robin D. replied 7 years ago.

    Form 5500-EZ is used by one-participant plans that are not subject to the requirements of section 104(a) of the Employee Retirement Income Security Act of 1974 (ERISA) and that are not eligible or choose not to file Form 5500-SF. The short form 5500 is for plans that have assets more than $250,000 and less than 100 participants.

    The instructions for Form 5500EZ state you do not have to file Form 5500-EZ for the 2009 plan year for a one-participant plan if the total of the plan's assets and the assets of all other one-participant plans maintained by the employer at the end of the 2009 plan year does not exceed $250,000, unless 2009 is the final plan year of the plan.

    The single member plans were previously not required to file if the assets did not exceed $100,000 but that increased to $250,000.

    Robin D. and other Tax Specialists are ready to help you
    Customer: replied 7 years ago.