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Keep getting form CP214 even though S corp was terminated. Worried about $150k penalty and /or $1500


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I keep getting the CP214 form sent to me to remind me to determine if i need to file form 5500-EZ. I ignore it because it said we send this form just to remind you if you previously filed a form which I did in 2014. So today I was curious and I called the IRS. I said why do I keep getting this form even though I terminated the solo 401k plan.

 

She immediately ask me if I had the 5500-ez in front of me. I did and everything was filled correctly EXCEPT the part that said "total number of participants at the end of the plan year". I wrote 1. She said I should have written 0 and that is why I keep getting this form. The Assets was already 0 and I wrote Final written. I was told to mail a amendment for 2014. I asked if I have to pay a penalty. I already converted the plan to a traditional IRA in 2014 and already issue 1099 and my asset at end of year was 0. He said I should not. He claims I don't have to pay a penalty because I filed it on-time but I just filed it incorrectly. I was told to mail the letter with an explanation and a 5500-EZ. Is the IRS agent correct? Anyone ever encounter this? I read online somewhere I need to pay $1500 penalty or $150,000. I was the only person on this solo 401k plan and I only file this return (due to final year) once because my plan never exceeded $250k nor was it even close. 

  • JanetJ changed the title to Keep getting form CP214 even though S corp was terminated. Worried about $150k penalty and /or $1500

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