IRS Notice CP214

One of our clients just received an IRS Notice CP214, which describes the circumstances under which a one-participant plan must file a Form 5500-EZ.  The last line of the notice states, "Alternatively, you may be able to file Form 5500-SF online using EFAST2's web-based filing system or through an EFAST2 approved vendor."

The 2021 Form 5500-EZ specifically state that a one-participant plan cannot file a  Form 5500 or Form 5500-SF.

Am I misinterpreting the CP214?

Thanks.

There's a "paper's okay" exception if the sponsoring company doesn't file more than 250 returns of any kind, I believe.

Sounds like the notice has old language. For 2019 and prior plan years, a one-participant plan could file on paper using the 5500-EZ or electronically using EFAST2 on Form 5500-SF and checking the box for "one-participant plan." For 2020 and later plan years, a one-participant plan must file 5500-EZ, but it can be filed either on paper or electronically through EFAST2.

Appreciate the confirmation that the notice is not accurate any longer, at least with respect to the type of Form that must be filed. 

Thank you.