What will happen if I don't file this year?

[Jim Chad]

Last year I filed a 5500 for a plan. In 2009 , the owner was the only Participant. Assets are only about $40,000. So I am not required to file this year, I think.

If I don't file, will the employer get a letter asking for the 5500?

Will anything else bad happen?

Am I wrong about not needing to file a 5500, or 5500EZ?

[12AX7]

Plan Sponsor may get a letter from the DOL, at which point you can respond that it's a one person plan with assets less than $250K at the end of the plan year. We've seen these come in prior to EFAST2. It's a little awkward at first for your client, but can be worked out.

[Bird]

Agree, a return is not required and any questions should go away with minor correspondence. I know some TPAs prepare/file EZs no matter what, but we don't.

[KMG77]

The other advantage to continuing to file (besides not having to deal with a potential delinquency notice) is starting the clock on statute of limiations.

[Guest BenFolds]

I'd file a 5500-EZ for 2009 just to get the client onto the EZ filing with the IRS. Then you can stop until they exceed $250,000.

In 18 months, they're going to get a letter that they didn't submit a 2009 5500. Be proactive and give the IRS an EZ so they understand why. It's easier than responding to an IRS notice and also less confusing and upsetting to the client.