Form 5500 EZ

[Guest mollym5]

2 questions:

1. can Form 5500 EZ be filed on cash basis instead of accrued basis (if assets are greater than $100,000 on accrued basis and less than $100,000 on a cash basis, what do I do?) (the forms were filed under an accrued basis for 1999 and 2000, but I switch to a cash basis for 2001?)

2. if a client didn't need to file Form 5500 EZ because assets were less than $100,000 and only one participant, but they filed 5500 anyways, can they now cease filing until the assets are greater than $100,000?

Thank you!

[Guest Stacy]

I am uncertain about the first question, however the second question is fairly easy. The filer must continue to file until a final filing is submitted. Otherwise they will receive correspondence stating they did not submit their return.