Form 5500-EZ - paper

I just took on a one-participant plan, the guy does not want an electronic filing and has less than 10 tax return due for the year.

From what I can tell by looking at 26 CFR § 301.6058-2, Form 5500-EZ can remain a paper form and is not mandated to be filed electronically.

I file all my plans under EFAST as the "return receipt" is immediate, so this one seems a bit odd to me.

The employer may decide which way it prefers to file a Form 5500-EZ; but you may decide which services you offer and which clients you accept.

It really boils down to individual preferences and convenience.   Just had a situation where we handle the Cash Balance plan for owner-only plan.   We do everything and we submitted EZ via EFAST.   The same client has their solo-401k with somebody else who prepared the 5500-EZ but does not file on behalf of their clients.  The client asked us if we can file and I said yes but we will have to charge for that.   I have also recommended they just print the form, sign it and snail-mail it to the appropriate address since that client is literally uncapable of doing anything electronically.

The client is happy because it was simple to do and it did not cost them any extra money.  I was happy since I avoided another setup in EFAST, transmission, documentation and communication  with the client because the fee I can charge just not justify the effort and time spent.    

Thanks, guys, for your opinions.  On the other side of the coin, personally I think it's easier and more cost effective to file online.  I prepare, client signs, faxes signature page back to me, and I file as TPA with E-signature attachment. You receive an immediate "acceptance", vs even with a certified, return receipt, I have had the IRS come back to the client to state they never received a copy of Form 5500-EZ.  To me, after dealing with the IRS entirely too much, it's less of a headache just to file electronically.

I was going to charge more for the paper filing, like $250 , for paper, postage, envelope with certified, return receipt as this guy is even suspicious of email.

Sounds like it's not worth the trouble!

My experience with Form 5500-EZ paper filings (before electronic filing) is that the IRS often processed deficiency letters for information returns that unquestionably had been filed. That the IRS had signed a certified-mail receipt confirming that the Form 5500-EZ was received did not slow down processing the mistaken deficiency letters.

On 6/1/2023 at 9:03 AM, thepensionmaven said:

Thanks, guys, for your opinions.  On the other side of the coin, personally I think it's easier and more cost effective to file online.  I prepare, client signs, faxes signature page back to me, and I file as TPA with E-signature attachment. You receive an immediate "acceptance", vs even with a certified, return receipt, I have had the IRS come back to the client to state they never received a copy of Form 5500-EZ.  To me, after dealing with the IRS entirely too much, it's less of a headache just to file electronically.

I was going to charge more for the paper filing, like $250 , for paper, postage, envelope with certified, return receipt as this guy is even suspicious of email.

Sounds like it's not worth the trouble!

 

So wait, the guy doesn't even want you to file for him? That's just nutty. I thought from your first message that maybe you didn't offer that service but...wow.