Employee Plans Compliance Unit (EPCU) - Current Projects - Form 5500-EZ First Return Filer
Why did I receive an EPCU compliance check letter?
Our records show:
- you filed a Form 5500-EZ or a Form 5500-SF (one participant plan box checked),
- your plan is effective prior to January 1, 2013,
- you checked this is ‘the first return filed for the plan’,
- your plan had over $250,000 in assets at the beginning of the plan year, and
- you did not file a Form 5500-series return for the prior plan year.
What is EPCU attempting to determine?
The Form 5500-EZ (or Form 5500-SF), which you marked as ‘the first return filed for the plan’, showed plan assets on the first day of the plan year greater than $250,000. The Employee Plans Compliance Unit (EPCU) wants to understand:
- why you did not file a Form 5500-series return for the prior plan year,
- whether you have corrected the situation, and
- if our records reflect accurate information.
If you did not file a required annual return, you should talk with your benefits professional. You may be eligible for administrative relief from penalties for failure to timely comply with the annual reporting requirements. See Penalty Relief Program for Form 5500-EZ Late Filers.
What actions do I need to take?
Please complete the information request. You may also furnish any other documents or clarifying material that you believe will be helpful for us to review. You should make every effort to be as complete and accurate as possible in your responses and respond by the due date.
If you need additional time, make sure to contact the EPCU representative (located on the letter) to request an extension. Failure to provide the information could result in further action or examination of your plan.
If You Have Questions
Feel free to e-mail us and we will be glad to answer any questions you have about the project and how it relates to your situation. Please include ‘First Return’ in the Subject line of the message and your telephone number so we can call you back. You may also telephone, fax or e-mail the contact person listed on the letter making sure to include your telephone number so we can call you back.
Plan sponsors who maintain a pension, profit-sharing, or other funded compensation plan (other than a SEP or SIMPLE IRA), whether or not the plan is qualified under the Internal Revenue Code and whether or not a deduction is claimed, generally must file an annual Form 5500 series return. In general, you do not have to file Form 5500-EZ (or a Form 5500-SF) 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 plan year does not exceed $250,000, unless it is the final plan year of the plan.
The Form 5500-EZ (or Form 5500-SF), which you marked as ‘the first return filed for the plan’, showed plan assets on the first day of the plan year greater than $250,000. The dollar amount of plan assets at the beginning of a plan year must be the same as the plan asset amount on the last day of the prior plan year but we have no record that you filed a Form 5500-series return for this plan for the prior plan year.
- Penalty Relief Program for Form 5500-EZ Late Filers
- Financial Advisors: Are Assets in Your Client’s One-Participant Plans More Than $250,000?
- EPCU List of Items Requested
- IRS Form 5500 corner
- Power of Attorney - Form 2848 and Instructions