Must a 5307 list all commonly-controlled employers?

[Peter Gulia]

The Instructions for Line 6 of Form 5307 tell an applicant that is a member of a group under common control to "[a]ttach a statement showing in detail: 1. All members of the group, 2. The relationship of each member to the plan sponsor, 3. The type(s) of plan(s) maintained by each employer, and 4. Plans common to all members."

If the application does not seek any assurance about whether the plan would meet any coverage or non-discrimination rule, is it really necessary to furnish this information? What (if anything) does the IRS do with the information?

[david rigby]

What (if anything) does the IRS do with the information?

Big Brother?

[Peter Gulia]

The hypothetical employer that wondered about whether listing the common-control group's employers really is necessary isn't concerned about privacy. Rather, they'd feel better about avoiding a work burden of compiling the information if they felt comfortable that the IRS doesn't really need the list because the IRS isn't asked to consider coverage or non-discrimination.

[QDROphile]

Perhaps an employer that properly considers and complies with coverage testing and other discrimination requirements should have gathered such infomation already for compliance purposes and would not have a serious burden when it came time to file with the IRS. It is a signal. It is an education. Isn't it nice that our government gets extra value out of the form and process?