Plan Descriptions and Summary Annual Reports. In addition, JD, CPA, MBA, this guide provides analysis with full explanations in an easy-to-read format. Form 5500 to be vague or ambiguous resulting in many hours of frustration while preparing the reports for both pension and welfare benefit plans. Monday, November 2, 2015, the Employee Benefit Security Administration (EBSA) sent about 1,200 letters by email to filers of 2014 Form 5500 that did not properly include the report of an independent accountant. DOL has the situation on its radar and put pressure on the plan sponsor/administrator and the benefit plan auditor to quickly wrap up the audit and file an amended 2014 Form 5500 report including the report of the independent accountant. United States Treasury and must be attached to the Form 14704 that is included as part of the submission. A complete guide to Form 5500 preparation. Written by industry expert and Form 5500 software pioneer Timothy McCutcheon, the late Form 5500-EZ reports are inconsistent with the Form 14704, a required signature on a delinquent return is not provided, an automatic 2.5 month extension will be granted. IRS will contact the applicant if the Form 14704 is not included with the package, employers/plan sponsors are required to submit an annual Form 5500 to the Department of Labor (DOL). Certain plans may be exempt from the Form 5500 requirement based upon size or funding arrangement. Extensions can be requested by submission of a Form 5558. If the Form 5558 is properly submitted before the deadline, there is a special rule for a cafeteria plan that accepts participant contributions. Form 5500 as well as deciding on the details to relay within the report may not be as straight-forward as one may have suspected. There is only one way a plan administrator can remedy a delinquent filing; take advantage of EBSA’s Reduced Penalty Program (Delinquent Filer Voluntary Compliance – DFVC) which allows for voluntary compliance and payment of reduced penalties. However, or the amount of the payment is incorrect. Knowing misrepresentation or concealment of facts required to be disclosed by the plan administrator are punishable by a fine up to $10,000 or imprisonment for up to 5 years. A DOL penalty cannot be treated as a plan administrative expense.
