The Internal Revenue Service has introduced a temporary one-year pilot program that will potentially enable certain small businesses with retirement plans to avoid penalties for not filing a Form 5500-EZ, and certain Forms 5500.
In an effort to encourage employers and plan administrators to “come clean”, the prescribed penalties of $25 per day and up to $15,000 per return can be avoided. For those who have already been assessed a penalty, this new procedure unfortunately doesn’t apply. No user fee is being assessed for participating in this program.
