revised draft instruction 5500-EZ

[Tom Poje]

while it is the EZ, I would expect the same for SF and 5500

IRS Compliance Questions.
The IRS has decided not to require plan sponsors to
enter the preparer’s information at the bottom of the
second page of Form 5500-EZ for the 2016 plan year and
plan sponsors should skip these questions when
completing the form.
The IRS has decided not to require plan sponsors to
complete questions on lines 4a through 4d, 13a, 13b, 14,
and 15 for the 2016 plan year and plan sponsors should
skip these questions when completing the form.
The IRS expects that the above questions will not be
included in the 2017 Form 5500-EZ.

so maybe we will never answer those questions! in fact, the verbiage seems to say they won't even be on the form.

[Belgarath]

Hurray!

[GMK]

I would expect the same for SF and 5500

l hope you are right, Pilgrim, but is there reason (historical or otherwise) to believe it will be the same for the SF and 5500 (whose names imply that they are not meant to be as E-Zee)?

[Tom Poje]

in a post a few weeks ago, someone noted the following from the ASPPA Conference, so I would believe the IRS is simply taking a reasonable approach based on all the facts. (Hence it will apply to all forms not just the EZ.

I am still hoping they will at least (by 2017) determine large plans based on those with balances instead of total participants.

....................

add some comments from ASPPA Annual

- Judging by comments made in several sessions, the new 5500 will not be ready for 2019

- Current estimates indicate that software providers will need at least 2 years to develop, code, and test the systems for the new 5500. This would mean that they would need to have guidance early 2017 to be functional for 2019. This does not seem to be even remotely likely

- DOL funding is an issue. No funding, no guidance, no new 5500

- Don’t expect any big changes until a few years into the next decade

- IRS only changes could come sooner but were once again delayed

The best way to avoid dealing with major changes to 5500 reporting? Retire early (at least that was the closing argument made by Janice Wegesin)

[My 2 cents]

The IRS says the following with respect to the compliance questions on one of their websites:

"The IRS added compliance questions to Forms 5500, 5500-SF, 5500-EZ and Schedules H, I and R. The IRS has decided that filers should not answer these questions for the 2015 and the 2016 plan years when completing the forms:"

That includes the new paid preparer information and the other compliance-related information. So it's the 2017 year filing, at the earliest (generally due beginning mid-2018).

For those so inclined, that allows that much more time for retiring early.

The url is https://www.irs.gov/retirement-plans/irs-compliance-questions-on-the-2015-and-2016-form-5500-series-returns.