5500EZ to a 5500

[Guest lindamichals]

If a 5500EZ must be amended to a 5500(owner hired an employee and did not inform us), does the $750 late filing fee apply? Thanks.

Linda Michals

[Belgarath]

Difficult to say. I wouldn't necessarily automatically file under DFVC if it were my own personal plan. I'd argue that there was in fact a filing, so the penalty doesn't apply since it is an amended form. If the DOL DOES attempt to assert full penalties, which I doubt, then I'd negotiate and argue for penalties no higher than what would be required under DFVC.

That having been said, there is a risk involved, and some clients would rather pay the DFVC and put it behind them. I'd give the client the option, since it was their fault, and ask them how they want you to proceed.

Dumb question, but was the employee eligible? If not, then the EZ was still ok.

[Guest Bob Kayak]

Difficult to say. I wouldn't necessarily automatically file under DFVC if it were my own personal plan. I'd argue that there was in fact a filing, so the penalty doesn't apply since it is an amended form.

With that said, how would you go about filing the amended Form 5500? I would assume you mark the form as amended and then check all the Schedules that apply. Since there were no schedules with the EZ, all schedules would be amended and have to be marked.

Does that sound correct?

[WDIK]

With that said, how would you go about filing the amended Form 5500? I would assume you mark the form as amended and then check all the Schedules that apply. Since there were no schedules with the EZ, all schedules would be amended and have to be marked.

Does that sound correct?

If you are going to file the 5500 as an amended return, I would proceed in the manner you have outlined.