compliance questions will be optional for 2015

[Tom Poje]

2015

Instructions for Form 5500-SF

Short Form Annual Return/Report of Small Employee Benefit Plan Code section references are to the Internal Revenue Code unless otherwise noted. ERISA refers to the Employee Retirement Income Security Act of 1974.

Changes to Note

IRS Electronic Filing Requirements. On September 29, 2014, the Treasury Department issued final regulations under sections 6058 and 6059 of the Code providing that certain filers must electronically file the Form 5500 series

returns/reports (including actuarial schedules). (See T.D. 9695, 79 FR 58256 at http://federalregister.gov/a/2014-23161). Under the regulations you are required to file a Form 5500 series return/report electronically if you are required to file at

least 250 returns of all types during the calendar year that includes the first day of the applicable plan year. Because the IRS may now require certain filers to electronically file the Form 5500 series returns/reports, the IRS is adding questions to the Form 5500 and its Schedules relating solely to IRS compliance issues. However, these new IRS compliance questions are optional for the 2015 plan year.

IRS Compliance Questions. New Lines 10j, 14c, 14d, and new Part IX (IRS Compliance Questions) were added to this Form for purposes of satisfying the reporting requirements of section 6058 of the Code. These IRS compliance questions are critical to the IRS to effectively focus on specific factors

and issues of the Federal tax law compliance. Although these questions are optional for the 2015 plan year, the IRS strongly encourages filers to answer these questions.

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looks the IRS is not all that happy this is optional for the upcoming year

[Tom Poje]

the IRS has provided the following Q and A for the compliance question.

e.g. what if plan uses current year testing for ADP and prior year for ACP testing?

Frequently Asked Questions Regarding the IRS Compliance Questions on the 2015 Form 5500.doc

[cjbaustin]

The Q & A also states that a Trust EIN should be used on the 5500 forms. Are providers asking their Plan Sponsors to get a Trust EIN if they do not already have one?

[goldtpa]

I saw that the 2015 5500-EZ was looking for similar info. I had a suspicion that they would add it to the SF. What is the consensus, are you going to leave it blank as its not mandatory? Or are you going to answer the questions anyway?

[My 2 cents]

I saw that the 2015 5500-EZ was looking for similar info. I had a suspicion that they would add it to the SF. What is the consensus, are you going to leave it blank as its not mandatory? Or are you going to answer the questions anyway?

Probably be a good idea to at least start thinking how you will handle the questions. The IRS does promise some changes in the instructions, but don't expect it to be optional for long!

Those with long memories will recall that the 5500 used to have a number of compliance-related questions (or was that the form that preceded the 5500?). As I recall, one of the purposes behind them was to highlight compliance failures (another having been to convert a lack of candor into the kind of fraud that would keep the statue of limitations from running).

[Peter Gulia]

Do any of the questions involve something for which the Labor department would be the enforcer and disclosing a problem on Form 5500 could cause the agency to have enough knowledge to trigger the shorter statute of limitations?