5500 Penalties due to in accurate data

[TPApril]

I am just curious if benefit plans (retirement or health & welfare) are ever penalized for filing inaccurate information (as opposed to issues related to filing late or incomplete)?

examples:

bad employee counts on main form or Schedule A

used wrong date for asset totals

wrong outstanding year end loan amount

recorded expenses in the wrong field

etc. etc.

if so how much are such penalties?

[Lou S.]

If it is an error, usually the IRS will simply ask you to fill an amended return with no penalties. Assuming it wasn't willful neglect and assuming it doesn't change the type of form that needs to be filed: such as EZ, SF or long form 5500 with audit.

[Kevin C]

I would also add that there could be possible negative consequences other than monetary penalties if the incorrect information hides wrong-doing. Here is an extreme example.

http://www.dol.gov/ebsa/newsroom/archives/pr113005.html

[JanetJ]

On 4/13/2015 at 3:16 PM, Lou S. said:

If it is an error, usually the IRS will simply ask you to fill an amended return with no penalties. Assuming it wasn't willful neglect and assuming it doesn't change the type of form that needs to be filed: such as EZ, SF or long form 5500 with audit.

Hi Lou,

Is this still true? I filed a final and only 5500-EZ in 2014 but wrote number of participants at end of plan year to be 1 instead of 0. I already distributed all assets for myself in 2014 too.  I just found out today when I keep getting reminder notice CP214 and I call IRS and they told me I should correct 2014 5500-ez form 

[RatherBeGolfing]

11 hours ago, JanetJ said:

Hi Lou,

Is this still true? I filed a final and only 5500-EZ in 2014 but wrote number of participants at end of plan year to be 1 instead of 0. I already distributed all assets for myself in 2014 too.  I just found out today when I keep getting reminder notice CP214 and I call IRS and they told me I should correct 2014 5500-ez form 

There is no reason why you would get a penalty for an that error, you are just correcting a reporting error that has no impact on the benefits or rights of a plan participant.