Form 5500 EZ or 5500?

[Guest schmpa]

A C corporation (A-corp) is owned 50/50 by its sole employee and another C corporation (B-corp). The sole employee is not otherwise related to B-corp. A-corp has a profit sharing plan and money purchase plan that has been in existence for 3 years with total assets less than $100,000 until this year. Can A-corp file a 5500-EZ? The instructions to form 5500-EZ qualifies the definition of a one-participate plan by stating that the participant must own the entire business. Has anyone found further guidance to clarify "ownership"?

[Mike Preston]

If "A-Corp" was, instead, "A-Partnership", then you could file an EZ. I don't think you'll find any more guidance on the issue of ownership, however. In your case, you have a one-person plan that covers an individual that does not own the entire business.