Failure to File 5500

[Guest JasonCollins]

I am currently looking for an attorney to refer a matter to that has experience dealing with the IRS / PWBA regarding a failure to file Form 5500 by a self employed individual for a single-member profit sharing plan.

The individual mailed in the delinquent 5500s and has received back letters from the service stating that he must respond within 30 days to prevent being automatically subject to the administrative penalties described in the intructions to form 5500. It appears from the instructions to the form that the penalties will wipe out his retirement savings.

If you have specific expertise related to this situation and can provide some assistance, let me know.

[Theresa Lynn]

Has the plan at any time held $100,000-plus in retirement assets?

Did the person file Forms 5500 or 5500-EZ? When?

Is the correspondence from IRS--seems like it would have to be since not an ERISA plan so EBSA would not care...

In what state does the employer operate--even though it is federal law, it generally is wise for the lawyer to be licensed for the appropriate state.

[Guest JasonCollins]

The plan had more than $100,000 in plan assets. Otherwise, there would not have been a failure to file.

The taxpayer lives and works in Texas.

The form filed was Form 5500EZ.

The letter providing 30 days to respond was from the IRS.

[mbozek]

Was the failure the result of not filing 5500 EZ each year since the plan had 100K in assets or did the failure result from the er's failure to file for each year in which the assets went below 100k after making an initial 5500 EZ filing? How many 5500s are delinquent? Did the taxpayer retain a CPA or tax preparer for his income tax returns for the years in question? A letter from tax counsel admitted to practice before the IRS should be able to resolve the issue without imposition of major penalities if the letter gives the IRS a reason to close the file.