The first move
Check whether Form 5500 was filed for the plan year the notice names, and whether the plan was required to file at all (one-participant plans under the asset threshold are exempt).
What these letters have in common
A CP403 or CP406 says the IRS has no Form 5500 for a plan year. A CP283 assesses the late filing penalty, which is per day and adds up fast. CP214 reminds a one-participant plan of its filing requirement. CP216F and CP216H approve or deny a Form 5558 extension. CP232 series notices cover Form 5500 series processing.
Late 5500 filings have a relief program (the Department of Labor's Delinquent Filer Voluntary Compliance Program) that caps penalties if you file before the IRS notice arrives; after the notice, IRS penalty relief is by reasonable cause.
What to gather
- The notice with the plan name, number, and year
- The plan's Form 5500 filings for the years in question
- Plan asset statements to determine the filing requirement
- Form 5558 if an extension was requested
How to write back
- Reasonable cause statement: When first-time abatement does not apply, you can ask the IRS to remove a penalty because circumstances beyond your control caused the failure. This statement lays out the facts in the order the IRS reads them.
Notices in this family
| Notice | What it means |
|---|---|
| CP212 | Retirement plan correspondence |
| CP214 | Reminder: one-participant plan Form 5500-EZ filing requirement |
| CP216F | Form 5558 extension approved |
| CP216H | Form 5558 extension denied |
| CP232A to CP232D | Form 5500 processing correspondence |
| CP283 | Form 5500 late filing penalty assessed |
| CP283C | Form 5500 late filing penalty after prior notice |
| CP295 | Retirement plan penalty correspondence |
| CP295A | Retirement plan penalty correspondence |
| CP403 | Form 5500 not received for the plan year |
| CP406 | Form 5500 still not received; penalty warning |
| Form 8955-SSA correspondence | Notices about the annual registration statement for separated participants |
When to get help
Any plan with employees other than the owner should route these to the plan's third-party administrator.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.