You still have time to file retirement plan tax returns for your small business. Under the IRS special penalty relief program, you can avoid stiff penalties for filing late. However, you must act soon.
Here are seven key points that you should know about this program.
1. Late Filing Penalties. Plan administrators and sponsors who fail to file required forms can face penalties of up to $15,000 per return. The plan usually must file Form 5500-EZ each year.
2. Penalty Relief Deadline. A special program provides penalty relief for late filers. Those who are eligible can avoid these penalties by filing late returns by June 2, 2015.
3. Relief to Certain Plans. In general, this program is open to certain small business plans. These include owner-spouse plans, plans of business partnerships (together, “one-participant plans”) and certain foreign plans.
4. Penalty Already Assessed. If you have already been assessed a penalty for late filings you are not eligible for this program.
5. One-Year Pilot. The IRS launched this program on June 2, 2014, as a one-year pilot. It can help small businesses that may have been unaware of their plan’s filing requirements. So far, the IRS has received about 6,000 late returns under the program.
6. Multiple Late Returns. You may apply for relief for multiple late returns in a single submission under this program.
7. No Fee Required. The IRS does not charge a filing fee or require a payment to apply for this relief.
Source: IRS Special Edition Tax Tip 2015-07
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