Form 8955-SSA Not timely filed

Hello Pension Gurus,  I have a 401k Plan that had a participant listed as PRN on the census data.  In the filing of Form 8955SSA for 2016, she did not get put on the form with a deferred vested benefit.  And subsequent years, was completely missed.  I was hoping to do a DFVCP filing and pay the fee for a late filing on only the 8955SSA.  But I cannot find where you can submit this form alone, without also filing for a late Form 5500SF.  Anybody have experience in correcting an oversight like this?  Thank you for any information you can give me!

7 minutes ago, MP CPC said:

I was hoping to do a DFVCP filing and pay the fee for a late filing on only the 8955SSA.  But I cannot find where you can submit this form alone, without also filing for a late Form 5500SF.  Anybody have experience in correcting an oversight like this?  Thank you for any information you can give me!

You can't find it because you can't do it.  There is no correction program for a late 8955-SSA.

Does she still have a DVB?  If not, she should have been registered and deregistered, and I wouldn't worry about it.  If she does, submit a amended 2016 8955-SSA.

On 6/20/2023 at 11:19 AM, RatherBeGolfing said:

If she does, submit a amended 2016 8955-SSA.

Or just file a 2022 form now. We are as picky as anyone (pickier) when it comes to a lot of things, but IMO this is not something to worry about. It's not like you are telling them anything is late. Someone please speak up if they are aware of anyone, anywhere, who got penalized for late reporting on an 8955-SSA.

8 minutes ago, Bird said:

Or just file a 2022 form now. We are as picky as anyone (pickier) when it comes to a lot of things, but IMO this is not something to worry about. It's not like you are telling them anything is late. Someone please speak up if they are aware of anyone, anywhere, who got penalized for late reporting on an 8955-SSA.

I agree, you are fine just adding them to the 2022 8955-SSA.

I have never heard of anyone getting penalized for late reporting.  If they were handing out penalties, there would almost have to be a correction program...

Thank you for replying to this.  I was concerned with the recent increase in the penalties on this form and wondering if they would start assessing them.  Have a happy summer!

Are you sure the person terminated?  PRN is hospital/medical-speak for "as needed".  An employee marked as such works less than parttime but hasn't been terminated, although they could have 0 hours for a year, I guess.  Would that be a termination for plan purposes?  It's not clear to me.

Just to be clear, the Form 8955-SSA is not under the jurisdiction of the DOL and the failure to file the 8955-SSA does not impact whether or not you have filed a complete Form 5500/-SF.  Therefore, DFVCP could not be an option.  The 8955-SSA is an IRS form and late filing penalties are governed by Code §6652(d)(1) - $10 per participant per day, up to a maximum of $50,000.  It is to the IRS that you would plead your case if needed (but this isn't governed under EPCRS either).

The actual statutory language is "... unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, an amount equal to $10 for each participant with respect to whom there is a failure to file, multiplied by the number of days during which such failure continues, but the total amount imposed under this paragraph on any person for any failure to file with respect to any plan year shall not exceed $50,000."  (emphasis added)

To RatherBeGolfing's point, Treasury doesn't appear to be demanding the penalty often.  Bird is right, put them on the 2022 form.  

Thanks David. Please jump in more often.

47 minutes ago, David Schultz said:

Just to be clear, the Form 8955-SSA is not under the jurisdiction of the DOL and the failure to file the 8955-SSA does not impact whether or not you have filed a complete Form 5500/-SF.  Therefore, DFVCP could not be an option.  The 8955-SSA is an IRS form and late filing penalties are governed by Code §6652(d)(1) - $10 per participant per day, up to a maximum of $50,000.  It is to the IRS that you would plead your case if needed (but this isn't governed under EPCRS either).

The actual statutory language is "... unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, an amount equal to $10 for each participant with respect to whom there is a failure to file, multiplied by the number of days during which such failure continues, but the total amount imposed under this paragraph on any person for any failure to file with respect to any plan year shall not exceed $50,000."  (emphasis added)

To RatherBeGolfing's point, Treasury doesn't appear to be demanding the penalty often.  Bird is right, put them on the 2022 form.  

Excellent detail David.  This is what Id call a "but why" answer.  Many might know that you can't file DFVCP or that you dont get a penalty notice automatically when they file late, this explains the "but why?"