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Part 25. Special Topics

Chapter 6. Statute Of Limitations

Section 11. Employee Plan Master File (EPMF)

25.6.11  Employee Plan Master File (EPMF)

25.6.11.1  (10-01-2001)
Employee Plan Master File (EPMF) Overview

  1. This section provides guidelines for identifying and resolving Employee Plan Master File (EPMF) cases.

25.6.11.2  (10-01-2007)
What is EPMF

  1. EPMF are Form 5500 series returns, associated schedules and attachments developed by the Internal Revenue Service (IRS), Department Of Labor (DOL), and the Pension Benefit Guaranty Corporation. They are filed by Employers and Plan Administrators of Pension or Welfare Benefit Plans. IRS processes the forms and provides requested information to the DOL and the Social Security Administration (SSA).

  2. EPMF returns are processed by the DOL vendor Vangent Inc., in Lawrence, KS using the Employee Retirement Income Security Act (ERISA), ERISA Filing Acceptance System (EFAS).

  3. All Form 5500 EZ and electronically filed 5500 series returns are processed by Vangent Inc., in Lawrence, KS.

  4. Forms 5500 series returns post with Transaction Code (TC) 150 and 977 (amended return) or TC 154 for Form 5330.

25.6.11.3  (04-01-2007)
EPMF Research

  1. To handle EPMF, you need to reference other Internal Revenue Manual (IRM) and Internal Revenue Code (IRC) Sections such as:

    • IRM 3.11.22, Employee Plan Master File

    • IRM 25.6, Statute Of Limitations

    • IRC Section 4971, Taxes on failure to meet minimum funding standards

    • IRC Section 4975, Tax on prohibited transactions

    • IRC Section 4977, Tax on certain fringe benefits provided by an employer

    • IRC Section 4979, Tax on certain excess contributions

    • IRC Section 4980, Tax on reversion of qualified plan assets to employer

25.6.11.4  (10-01-2007)
EPMF Procedures

  1. All Form 5500 series returns must be filed on or before the last day of the seventh month following the close of the plan year unless extensions have been granted.

  2. Part IV of Form 5330 Tax on Prohibited Transactions (Section 4975)—the statute period begins when the prohibited transaction is reported on Form 5500 series. The statute is 3 years from the due date or filing date of the Form 5500 series return, whichever is later. If there is no disclosure of the prohibited transaction on the Form 5500 series, the statute is 6 years rather than the normal 3 years. Also, in the case of a continuing transaction (e.g., a loan) the prohibited transaction is deemed to recur on the first day of each subsequent taxable year in which the transaction continues.

  3. The filing of the Form 5500 series starts the statute running for transactions occurring in that year only.

25.6.11.4.1  (04-01-2007)
Employee Plan/Exempt Organization (EP/EO) Returns

  1. Campus employees will not generate overassessment transactions on EP/EO returns unless directed or requested by local EP/EO Area offices except for math errors or campus processing errors.

  2. EP/EO returns subject to EP/EO claims are:

    • Form 990 Business Master File (BMF), Return of Organization Exempt From Income Tax

    • Form 990-PF (BMF), Return of Private Foundation

    • Form 1120-C (BMF), Farmer's Cooperative Association Income Tax Return

    • Form 990-T (BMF), Exempt Organization Business Income Tax Return

    • Forms 4720 Non Master File (NMF), Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 of the IRC

    • Form 5227 (BMF) Split-Interest Trust Information Return

    • Form 5330 (BMF), Return of Excise Taxes Related to Employee Benefit Plans

    • Forms 5500 (EPMF), Annual Return/Report of Employee Benefit Plan and Return/Report of Employee Benefit Plan

      Note:

      Penalty process is posted to BMF MFT 74.

    • Form 5500-EZ (EPMF), Annual Return of One-Participant Pension Retirement Plan

      Note:

      penalty process is posted to BMF MFT 74.

    • Form 8038 (BMF), Information Return for Tax-Exempt Private Activity Bond Issues

25.6.11.4.2  (10-01-2007)
Forms 5330, Return of Excise Taxes Related To Employee Benefit Plans

  1. Form 5330 is a tax return, and must be processed to either EPMF for recording the fact of filing or to Business Master File (BMF) for assessment and billing purposes.

  2. All Forms 5330 must have an Employer Identification Number (EIN) or Social Security Number (SSN) shown based on the box checked. If missing, search attachments for a valid TIN. Research EPMF for Employer Identification Number (EIN). If Social Security Number (SSN) box is checked and SSN is not shown, research using suffix of "V," the SSN will be established like a 706 filer. If a Taxpayer Identification Number (TIN) is not located after research, correspond with the taxpayer.

  3. Plan Year Ending must contain an entry if an EIN is present. If blank, use the tax year ending as the plan year ending.

  4. A 3 digit Plan Number must be present other than 000, if an EIN is present. (Forms with an SSN will show a 000 Plan Number). If blank and a Plan Name is present, research EPMF for the Plan Number. If there is no record after research, use "001" . If the period is statute imminent use Protective Manual Assessment (PMA) processing procedures while waiting for reply. Allow taxpayers 30 days for a reply.

  5. Process the following miscellaneous returns as follows:

    • Pre-Master File (Pre–Automated Data Processing). These returns are filed for periods prior to the first period subject to master file processing, but are of the type which are presently entered on a Master File.

  6. Make quick, prompt or jeopardy assessments on taxpayer prepared original non-master and/or master file returns

  7. For further information, refer to IRM 3.11.22, EPMF.

25.6.11.4.2.1  (10-01-2004)
Statute Cases (Form 5330)

  1. The IRC places statutory limitations on the allowance of refunds or credits or for the assessment of additional tax. An additional tax assessment must be made not later than 3 years from the date the return was filed. A claim for refund must be filed not later than 3 years from the date the return was filed, or 2 years from the date the tax was paid, whichever is later. See IRM 25.6.6.6.3.1 and IRM 25.6.6.3.2. Although the tax cannot be assessed after statute expiration, payments can be applied to Excess Collection File (XSF).

  2. The Statute function must take the following actions on all cases forwarded for clearance:

    1. Check CC AMDIS and if open, route to Examination.

    2. Route the case to the Document Perfection Operations for expedited processing if statute is within 30 days.

    3. Report as barred assessment if statute expired and filed timely.

    4. Input TC 290 in the amount of zero and issue letter to the taxpayer if the statute has expired and filed after statute period.

  3. Examine Form 5330 for completeness. It can show one or several different tax liabilities. If any questions arise, reject case to the Code and Edit function, since no statute is involved until a return is complete.

  4. Refer to IRM 3.11.22, EPMF, for due dates and received dates.

25.6.11.4.3  (10-01-2007)
Amended Returns

  1. Statute-related amended returns (including "Revised" , "Supplemental" , "Corrected" , etc.) must be associated with the original for reconciliation and adjustments. The Customer Service/Adjustments function is responsible for reconciliation of returns reflecting a tax decrease.

  2. See IRM 3.11.22, EPMF, for reference to amended returns.

  3. See IRM 21.7.7.4.18.6, Amended Statute Period EO Returns concerning Statute involvement in the processing of these amended returns.


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