metsfan026 Posted October 11, 2022 Posted October 11, 2022 Taking over a C-Corp with two employees: 1) Owner of about 95% of company 2) Employee with about 5% ownership in the company There is no relationship between the two. The previous TPA had been filing the Form 5500 as an EZ. Would this qualify for that, however? Unless that type of ownership would classify them as a "partner", I don't see it but I just wanted to confirm. Was planning to switch it to an SF, but wanted to confirm. Thanks everyone!
CuseFan Posted October 11, 2022 Posted October 11, 2022 Agree with you that EZ instructions do not seem to support prior TPA's position. Being a C-corp with multiple owners seems to kick it out. Instructions say an S-corp 2%+ shareholder is considered a partner in a partnership. If that applied to C-corp as well then the instructions would have stated such. Bri, Luke Bailey and C. B. Zeller 3 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
C. B. Zeller Posted October 11, 2022 Posted October 11, 2022 If it's not eligible to file 5500-EZ then they are probably looking at one or more years of delinquent returns. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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