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The permanent 5500-EZ penalty relief program for 1-person plans that are not subject to Title I of ERISA requires a payment of $500 for a plan with one delinquent return, $1,000 for a plan with two delinquent returns, and a maximum of $1,500 for three or more delinquent returns on the same plan.

While delinquent filers of Forms 5500-EZ are not required to use this IRS penalty relief program, it is advisable for employers to submit under this program; otherwise the alternative reasonable cause approach could result in an IRS denial that would then disqualify an employer from the penalty relief program and force the issue of the employer having to pay the IRS the late filing penalty of $25 for each day the return was late, up to a maximum of $15,000 per return. 

The permanent 5500-EZ penalty relief program for 1-person plans requires a Form 14704, Transmittal Schedule accompany the 5500-EZ filing under this program.

The permanent 5500-EZ penalty relief program for 1-person plans requires applicants to mark in red letters in the top margin of the first page of the return (above the title of the form):  “Delinquent  Return Submitted under Rev. Proc. 2015-32, Eligible for Penalty Relief.” 

If a private delivery service is being used to make a submission under the permanent 5500-EZ penalty relief program for 1-person plans, the private delivery system must be on the authorized list that the IRS had included in the instructions to the most recent Form 5500-EZ. 

The permanent 5500-EZ penalty relief program for 1-person plans requires applicants to include all 5500 Schedules applicable to the plan for the year for which the return is delinquent, such as the Schedule SB for Defined Benefit Plans. 

Once the IRS issues a CP 283 notice and penalty assessment for a plan’s delinquent 5500-EZ filing, it is too late for the employer to file for relief under the permanent 5500-EZ penalty relief program for 1-person plans. 

In contrast to the IRS 5500-EZ penalty relief program for plans that are not subject to Title I, the DOL’s DFVC penalty relief program is still an option if/when a plan receives an IRS penalty assessment letter. 

The IRS is proposing additional questions be added to the 2015 Forms 5500, 5500-SF, and 5500-EZ and the new questions can be reviewed in the draft version of Form 5500-SUP. 

There is a special IRS mailing address that must be used when a plan is filing under the permanent 5500-EZ penalty relief program for 1-person plans.