IRS Penalty Waivers for Certain Form 8955-SSA Delinquencies

On October 1, 2014, the IRS announced that due to changes to the DOL’s electronic filing system, filings under DFVC no longer include all information required by the IRS. The Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, which replaced the Schedule SSA (Form 5500), must be filed directly with the IRS (see Question 65 for details).

The IRS has therefore modified the requirements for qualifying for IRS penalty relief. The IRS is now waiving its late filing penalties only for filers who:

1.    satisfy the Department of Labor’s DFVC requirements for:

• ·       Forms 5500, Annual Return/Report of Employee Benefit Plan, or Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan;

2.    file a paper Form 8955-SSA with the IRS for the same delinquent tax year filings; and

3.    meet the requirements of Notice 2014-35 (see below).

Plans Eligible for Relief

Retirement plans governed by Title I of ERISA that:

•    must file a Form 5500-series return (but not Forms 5500-EZ or 5500-SF for plans without employees); and

•    are eligible for DOL’s Delinquent Filer Voluntary Compliance Program.

Note: The IRS has a separate Form 5500-EZ Late Filer Program for relief from late filing penalties for non-ERISA plans that must file Forms 5500-EZ or 5500-SF because they cover only the owner, partner and spouses.