late 5500EZ relief program question

[HarryX]

These are probably a silly questions, but with such an astronomical penalty, I want to ensure I get this right.

1. Box 1A. reads "This return is: (1) the first return filed for the plan (2) an amended return (3) the final return filed for the plan (4) a short plan year return (less than 12 months)"

For each return, would "(1)the first return filed for the plan" be checked, or does this mean only for the very first return? I.e., does this mean for the plan year being filed, or ever? It sounds like this would only apply to the very first year being filed, but on the form, it looks like this should be checked each year, since this is not an amended return or final return. The instructions say "First Return Check box A(1) if this is the first filing for this plan. Do not check this box if you have ever filed for this plan, even if it was a different form (for example, Form 5500)." But lets say, for example, I file 2021 as the first plan year, and now I'm filling out 2022. I guess another way to ask this question, is it ok to leave Box A blank?

2. When submitting the late return, if box D is available, do I still need to write in red “Delinquent Return Filed under Rev. Proc. 2015-32, Eligible for Penalty Relief” at the top of the return? 

3. If I'm sending these in now, in March, would it be prudent to wait until closer to the July 31 deadline to file for the last plan year electronically, which is not currently delinquent, to avoid triggering a notice for the previous years, if it takes them awhile to process these?

[CuseFan]

1. I would think that if you are concurrently sending in 3 late returns that the first chronologically would be the first return and so the next two would leave box A blank. You could not have multiple "first" returns so I think this is the only way that makes sense. Also, I would interpret as the first plan year for which a filing is required. I do not have any direct experience with this specific issue but that is how I would handle.

2. I would still do that for added clarity, it doesn't hurt.

3. Sorry, I'm having a hard time not laughing at the presumption that if these filings are done now that they would all be processed and cleared/closed come July and the current filing due date. That may happen, so waiting might avoid having to deal with a notice. That makes sense and you haven't lost anything if you still get a notice because those prior returns are sitting on some IRS agent's desk.

[HarryX]

19 hours ago, CuseFan said:

3. Sorry, I'm having a hard time not laughing at the presumption that if these filings are done now that they would all be processed and cleared/closed come July and the current filing due date. That may happen, so waiting might avoid having to deal with a notice. That makes sense and you haven't lost anything if you still get a notice because those prior returns are sitting on some IRS agent's desk.

Thanks for your insight. Would I have recourse if this were to happen, since the delinquent returns were submitted for the relief program?

 

Also..one other question just to be sure...am I using my business EIN or the plan EIN in section 2b?

[CuseFan]

If you got a delinquent filing warning letter after filing the current return in July, because those prior delinquent program-filed returns were not yet processed, your recourse is to provide proof of those filings. You should always keep copies of signed and dated paper filings, mail them certified return receipt requested, and keep all related forms, receipts, etc. together. Filings should always be made using the plan sponsor's (the business) EIN. the plan/trust ID is only used for trust level reporting such as distributions.