Understanding the CP214 Notice
You open the envelope from the IRS, and it contains… a CP214 Notice. What exactly is it, and what do you have to do? The good news: You don’t have to do anything, at least not right away.
The CP214 is a reminder notice for employee plans filers that previously filed a Form 5500-EZ or Form 5500-SF. Because filers are only liable to file a return under certain conditions, it is a reminder of the obligation to review plan status and timely file a return if the filer and plan meet those conditions.
It is not necessary to respond if one receives a CP214. However, a recipient may want to:
- review the requirements for filing a Form 5500-EZ or Form 5500-SF;
- review the filing requirements for the plan and determine if it will be necessary to file a Form 5500-EZ or Form 5500-SF for the plan period the notice references; and
- complete and submit the Form 5500-EZ or 5500-SF on or before the filing deadline if filing is required.
Remember that it is not necessary to file a Form 5500-EZ or 5500-SF for the plan year if the plan’s total assets (either alone or in combination with another one-participant plan) are $250,000 or less, unless this is the final plan year.
More information on the CP214 is available here