IRS Mercy for Small Retirement Plan Late Filers

In June, IRS began a one year pilot program to help small businesses with retirement plans which haven’t been filing the retirement plan reports timely.

Plan administrators who don’t file the requisite Form 5500 can face significant penalties.  Those who have already been assessed late filing penalties are not eligible for this program, which is generally available to plans maintained by certain small businesses, such as those in an owner-spouse arrangement or eligible partnership.

If a retirement plan has not filed relevant returns for more than one plan year, penalty relief may be available for all of these returns.

Check out Revenue Procedure 2014-32 for the details.