- What it means
- Form 5558 extension approved
- Respond within
- The date printed on the notice
- When to get help
- Any plan with employees other than the owner should route these to the plan's third-party administrator.
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 letters in this family 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.
Closest built pages
- CP403: Form 5500 not received
- CP406: Form 5500 still not received
- CP283: Form 5500 late filing penalty assessed
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.