IRS EPCU Updates Info on Erroneous 5500 Filings
The IRS Employee Plans Compliance Unit (EPCU) has updated the information
it provides on its Q&A page concerning handling certain erroneous filings. The EPCU develops compliance projects and analyzes data to better identify potential non-compliance with IRS rules. It ordinarily contacts taxpayers by correspondence and resolves issues without making on-site examinations of plan books and records.
The EPCU reminds plans that its review of Forms 5500 showed that there some of the forms filed are marked as final returns, yet they report that there were plan assets at the end of the plan year. However, a Form 5500 should not be marked as a final return unless there are zero assets at the end of the plan year and zero participants at the end of the plan year.
The EPCU further reminds that a Form 5500 which is filed with inaccurate information may result in subsequent correspondence from the IRS that may not have been initiated if the filed return had reflected accurate information.
A filer that receives a Request for Information from the EPCU should complete and return it to the person whose information is shown on the cover letter via e-mail, fax or postal mail. A filer also may furnish any other documents or clarifying material that it believes will be helpful.
To date, the EPCU has completed close to 70 projects and has conducted more than 38,000 compliance checks.