Individual 401 K reporting requirement – Form 5500EZ
A tricky issue is there is zero reporting of this retirement plan to the IRS until the balance reaches $250,000, for a one participant plan.
With July 31, due date (FORM 5500 EZ) for 2014 plans coming is there any leads to removal of penalties as my situation is one that 3 years ago the balance exceeded the $250,000 threshold and is subject to a $25 per day penalty for late filed returns.
Any leads besides praying for penalty removal under reasonable cause?
Steve
Permalink Submitted by Mobey on Wed, 2015-06-10 16:06
First, I’m not the expert these guys are so wait for a real response. But we ran into a situation where a couple came to us and hadn’t filed the 5500 for three years of exceeding the $250,000. We had their lawyer write the IRS and explain it had been missed by the previous advisor / tax preparer and asked for it to be waived and at least in this case, they complied.My understanding was they are much more forgiving if you flag it vs if they find it. Good Luck.
Permalink Submitted by Alan - IRA critic on Thu, 2015-06-11 03:13
This new program will provide some relief, but up to about a week ago, I think you could have filed the late forms under the 1 year grace period without penalty at all. http://www.irs.gov/pub/irs-drop/rp-15-32.pdf