No one likes to hear from the IRS. But for the roughly 4,000 plan sponsors who have recently received erroneous notices, it’s extremely frustrating. Chances are if you have received a notice telling you that the IRS is assessing a penalty due to your “filing a late or incomplete” Form 5500 or 8955-SSA, it may very well be a mistake.
Plan Notice Errors
According to the IRS, there was a programming issue that caused these notices to be sent in error. In reality, only 200 to 300 plan sponsors should have received the notice. If you received the notice by mistake, you will be receiving a letter from the IRS noting it as such. Letters will be sent in approximately two weeks and will give you permission to disregard the erroneous notice and stress that no further action is necessary on your part.
If you don’t want to wait for a letter to see if you received one of the erroneous notices, you can contact the IRS helpline at 877-829-5500. Via phone, IRS representatives will abate the erroneous penalty and will then send you a written confirmation in the mail.
Of course, you can also contact Rea & Associates if you received the notice and we’ll happily help you troubleshoot the notice.
Steve Renner, QKA, a senior manager with Rea & Associates contributed to this post.
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