K-t-F Posted June 24, 2022 Posted June 24, 2022 Prove me wrong.... A CPA I work with prepares his own 5500-EZ. He is telling me that he must file the EZ electronically because he files more than 250 returns. Per the EZ instructions he is reading this: Mandatory electronic filing. A filer must file the Form 5500-EZ electronically using the EFAST2 Filing System instead of filing a paper Form 5500-EZ with the IRS if the filer is required to file at least 250 returns of any type with the IRS, including information returns (for example, Forms W-2 and Forms 1099), income tax returns, employment tax returns, and excise tax returns, during the calendar year that includes the first day of the applicable plan year. While he may file in excess of 250 returns on behalf of his clients, it is my contention that what is written he is interpreting incorrectly. Is what the IRS is saying the following... that if the plan sponsor files in excess of 250 returns on behalf of them self then sure, they must file the EZ electronically. But because he files on behalf of his clients that is not the case, don't need to file his EZ electronically. I am happy to file the EZ electronically to sooth his anxiety. I just don't think it's necessary. Its not easy being green
RatherBeGolfing Posted June 24, 2022 Posted June 24, 2022 If the entity required to file the 5500 is also required to file at least 250 returns of any type, mandatory electronic filing of the 5500-EZ applies. The CPA is incorrect. Luke Bailey and Lou S. 2
K-t-F Posted June 24, 2022 Author Posted June 24, 2022 10 minutes ago, RatherBeGolfing said: required to file at least 250 returns of any type For himself... not for his clients. If HE for his own business (or personally across all his businesses?) was required to file 250+ returns then yes, he needs to file electronically. But because he prepares returns for his clients this rule does not apply. Right? Its not easy being green
BG5150 Posted June 24, 2022 Posted June 24, 2022 That's correct. Unless the plan sponsor's company has 150 partners and spouses and they all get 1099s and they filed a bunch of 5330's, etc. But why not file electronically? So much easier. And you get an immediate confirmation. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
K-t-F Posted June 24, 2022 Author Posted June 24, 2022 Does everyone file EZs electronically now? I just spoke to him and will file electronically. Its not easy being green
BG5150 Posted June 24, 2022 Posted June 24, 2022 I do for probably 98% of my clients. I have a couple who insist on signing and mailing the forms themselves. I tried to tell them, just sign it and send it back to me, and I'll file it electronically. You get immediate confirmation and it saves you the $4 in mail delivery confirmation fees. In fact, I started several years ago and put the EZs on SF one-participant plans so I could file electronically. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
RatherBeGolfing Posted June 24, 2022 Posted June 24, 2022 1 hour ago, K-t-F said: If HE for his own business (or personally across all his businesses?) was required to file 250+ returns then yes, he needs to file electronically. But because he prepares returns for his clients this rule does not apply. Right? Correct. 1 hour ago, K-t-F said: Does everyone file EZs electronically now? Pretty much. Like BG, I filed most as one-participant plans on the SF until we could file the EZ electronically.
K-t-F Posted June 27, 2022 Author Posted June 27, 2022 I do like the instant confirmation filing the SF electronically (for my traditional plans). I guess it's time to move towards electronically filing the EZ. Thanks Its not easy being green
Bri Posted June 27, 2022 Posted June 27, 2022 I remember taking over plans from a former TPA office that would do their owners-only on the SF via EFAST, but neglected to check off the "one-participant plan" box. So everything was out there on the DOL website for these plans even though they woulda/coulda/shoulda been shielded from public view.
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