Retirement plan penalty relief for late filing of annual returns is a great benefit. As some of you may know, the penalties for late filing of form 5500 and related forms can add up very quickly. The standard late filing penalty is $25 per day. However, the Internal Revenue Service has issued a new Revenue Procedure, 2014-32 providing relief from penalties for late filing of form 5500 EZ and Revenue Procedure 2014-35 providing administrative relief to late filers of form 5500 who satisfy the requirements of the notice and the Delinquent Filer Voluntary Compliance Program as administered by the Department of Labor. At Fragnoli & Company, CPAs, we recommend to all businesses who are delinquent in filing their respective 5500 EZ or standard 5500 to take advantage of these Revenue Procedures.
If you fall into this situation please seek out a CPA or plan administrator with experience in retirement plan filing compliance and have the person review your situation and assist you with your compliance needs. When it comes to plan compliance and such, you get what you pay for when it comes to professional assistance.
In my opinion as a tax practitioner with more than thirty years experience, retirement plans are the best tax planning and tax efficient tools available to individuals and businesses. The problem is that many taxpayers do not understand the implementation of the plans and the related compliance requirements. A professional can help with this and the benefits are huge. At Fragnoli & Company, CPAs we assist in both the selection of the appropriate plan and the related compliance filings. We work with some of the best plan administrators and financial advisors in the industry. Please consider establishing a plan for your business today!!