Filed 5500 when should have filed EZ

[Belgarath]

For 2009, an analyst didn't remember that the rules had changed, and filed a 5500 for a one person plan because it was a controlled group. Should have filed an EZ. Now, for 2010, they have other participants, so a 5500 is now the appropriate form.

Just seeing what other folks would vote for. Would you:

A) Leave it alone, and hope the DOL never kicks back the 2009 form

B) File a 5500 EZ with the IRS for 2009, as an amended form, and attach the confirmation from the DOL to prove that the original was timely filed, but inadvertently filed as a 5500 rather than an EZ

C) Other

P.S. - they don't qualify for the SF

Thanks!

[Andy the Actuary]

(B) is a legitimate choice but may likely follow the law of "no good deed goes unpunished" because it assumes this lands in the hands of someone who is able and pays care and attention. I see there system being confused that two 5500s were filed.

A plausible © would be to contact the IRS/DOL and seek their guidance, to which I wish you good luck.

I'd go with (A) because then at least if it is kicked you have an audience and you can offer up (B) and your explanations.

[Belgarath]

Apparently great minds think alike! Your thought process exactly mirrors mine. (if it were eligible for an SF, then I'd have 'em file an SF as an amended form)

Thanks.

[Andy the Actuary]

Apparently great minds think alike! Your thought process exactly mirrors mine. (if it were eligible for an SF, then I'd have 'em file an SF as an amended form)

Thanks.

You tell me how great my mind is: I misplaced my Medicare Card and further can't remember to which foot my left baby toe is attached.

[ESOP Guy]

Maybe I do not understand the question. But why do you think you have to file an amended return at all?

My understanding is a one person plan CAN file a Form 5500-EZ, but is not REQUIRED to file a Form 5500-EZ.

You always have the option of filing the longer form, which it sounds like they did.

I believe the correct answer is do nothing because nothing was done wrong.

[Guest nmull22]

Maybe I do not understand the question. But why do you think you have to file an amended return at all?

My understanding is a one person plan CAN file a Form 5500-EZ, but is not REQUIRED to file a Form 5500-EZ.

You always have the option of filing the longer form, which it sounds like they did.

I believe the correct answer is do nothing because nothing was done wrong.

I believe that was true prior to the introduction of the SF. But this is how it reads now:

From the 5500 Instructions:

Do Not File a Form 5500 for a Pension Benefit Plan That Is Any of the Following:

11. A One-Participant (Owners and Their Spouses) Retirement Plan (generally referred to as a One-Participant Plan). However, one-participant plans that are required to file must file either the Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan, with the IRS or, if eligible, may file the Form 5500-SF, Short Form Annual Return/Report of Employee Benefit Plan, electronically with EFAST. For this purpose, a one-participant plan is:

a. a pension benefit plan that covers only an individual or an individual and his or her spouse who wholly own a trade or business, whether incorporated or unincorporated; or

b. a pension benefit plan for a partnership that covers only the partners or the partners and the partners’ spouses.