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CCH® PENSION — 11/15/11

EPCU begins Form 5500 non-filer project

The IRS's Employee Plans Compliance Unit (EPCU) has begun the "Form 5500 Non-Filer Project" to promote compliance with Form 5500 filing requirements.

Under the non-filer program, the EPCU sends compliance check letters to plan sponsors for whom it has no record of a Form 5500 or 5500-SF filing with the DOL (or Form 5500-EZ with the IRS) six to nine months after the return's due date. The EPCU then requests the plan sponsors to either file the return or explain why it wasn't filed. If the plan sponsor files the return, the EPCU closes its contact.

If the plan sponsor is required to, but doesn't file Form 5500, the IRS will send them a delinquency notice (CP 403 Notice) asking employers to respond within 30 days. If they fail to respond, the IRS will send a subsequent notice (CP 406 Notice) requesting a response within 30 days. The IRS does not grant extensions of time to reply to the CP 406 notice.

The EPCU said that it does not evaluate "reasonable cause" explanations they receive during a non-filer compliance check. However, the IRS and DOL may abate or reduce penalties if there were mitigating circumstances or conditions that adversely affected the plan's ability to file a return.

Source: IRS Employee Plans News, Issue 2011-7, October 12, 2011.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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