Enmgy E-00070-15-o Series3 Ethics - 1 Cpe Hour For A Score Of At Least 70%

Explanation
The given statement is true. The permanent 5500-EZ penalty relief program does indeed require 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. This program provides penalty relief for 1-person plans that are not subject to Title I of ERISA.

Explanation
Employers who are delinquent filers of Forms 5500-EZ are advised to submit under the IRS penalty relief program. If they choose not to use this program, they may have to rely on the alternative reasonable cause approach. However, if the IRS denies their reasonable cause claim, they will be disqualified from the penalty relief program and will have to pay the late filing penalty of $25 for each day the return was late, with a maximum penalty of $15,000 per return. Therefore, it is advisable for employers to submit under the penalty relief program to avoid these potential penalties.

Explanation
The statement is true because the permanent 5500-EZ penalty relief program for 1-person plans does indeed require a Form 14704, Transmittal Schedule to accompany the 5500-EZ filing. This form serves as a schedule to provide additional information and documentation related to the 5500-EZ filing, ensuring compliance with the program requirements.

Explanation
The explanation for the given correct answer is that the permanent 5500-EZ penalty relief program for 1-person plans does indeed require applicants to mark in red letters in the top margin of the first page of the return the statement: "Delinquent Return Submitted under Rev. Proc. 2015-32, Eligible for Penalty Relief." Therefore, the answer is true.

Explanation
Private delivery services can be used to make a submission under the permanent 5500-EZ penalty relief program for 1-person plans. However, the private delivery system must be on the authorized list provided by the IRS in the instructions to the most recent Form 5500-EZ. This means that not all private delivery services are accepted, and only those on the authorized list can be used for this purpose. Therefore, the statement is true.

Explanation
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. This means that if a person has a 1-person plan and their return is delinquent, they must include all applicable schedules, including the Schedule SB for Defined Benefit Plans, in order to qualify for the penalty relief program. Therefore, the statement "True" is the correct answer.

Explanation
Once the IRS issues a CP 283 notice and penalty assessment for a plan's delinquent 5500-EZ filing, it means that the penalty has already been assessed and the employer has already been notified. At this point, it is too late for the employer to file for relief under the permanent 5500-EZ penalty relief program for 1-person plans. This indicates that the statement "it is too late for the employer to file for relief under the permanent 5500-EZ penalty relief program for 1-person plans" is true.

Explanation
The explanation for the given correct answer is that the IRS 5500-EZ penalty relief program is only applicable to plans that are not subject to Title I, whereas the DOL's DFVC penalty relief program is still available even if a plan receives an IRS penalty assessment letter. This means that if a plan is subject to Title I and receives an IRS penalty assessment, it can still utilize the DOL's DFVC penalty relief program to mitigate the penalties. Therefore, the statement "the DOL's DFVC penalty relief program is still an option if/when a plan receives an IRS penalty assessment letter" is true.

Explanation
The explanation for the given correct answer is that the IRS is indeed proposing additional questions to be added to the 2015 Forms 5500, 5500-SF, and 5500-EZ. These new questions can be reviewed in the draft version of Form 5500-SUP. Therefore, the statement "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" is true.

Explanation
The statement is true because there is indeed 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. This indicates that there is a specific mailing address designated by the IRS for this particular program, emphasizing the importance of using the correct address when filing under this program.