Form 5500-EZ

[Lori Foresz]

Hi,

I am trying to figure out if a plan that covers the 100% owner of a corporation and his daughter can file an EZ. If 318 stock attribution rules apply, then the daughter is also a 100% owner and the plan would only covers owners.

Is that incorrect thinking?

Help!

Thanks

[Belgarath]

I would say no, for the definition of ownership for this purpose, the attribution rules do not apply.

[Lame Duck]

Although there is some disagreement about this conclusion, and it doesn't seem to make much sense, the instructions to Form 5500-EZ state that you may file form 5500-EZ if the plan covers only you (or you and your spouse) and you own the entire business, whether incorporated or unincorporated, or the plan covers only one or more partners (and spouses) in a business partnership. A literal reading of the instructions would appear to preclude the use of 5500-EZ in any case involving a corporation with owners other than spouses.