IRS Government Form 5330 Questions

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Certain employers are required to file form 5330 with the Internal Revenue Service when they contribute to employee benefit plans. Form 5330 determines if employers owe taxes based on providing excess fringe benefits, nondeductible contributions to qualified plans or when there is a failure to pay a liquidity shortfall.

When Is Form 5330 Due?

  • For most companies, form 5330 is due the last day of the seventh month following the end of the employer's tax year. If the taxes due on form 5330 are a result of prohibited tax shelter transactions, the form is due the 15th day of the fifth month following the end of the entity's tax year. If the tax is related to excess contributions made to certain plans, the form is due the last day of the 15th month, following the end of the employer's tax year. If the tax is related to a reversion of qualified plan assets to the employer or failure to provide notice of significant reductions in future accruals, the form is due the last day of the month following the month of the event.

What Happens If Form 5330 Is Filed Late?

  • If the company will not be able to file form 5330 by the due date, they should file for an extension. If the company does not file for an extension and files the form late or if the company files for the extension and files the form past the extended due date, the company will incur a penalty for late filing of the return. The penalty equals 5 percent of the unpaid tax each month up to 25 percent. Taxes that are paid late incur a penalty of .5 percent (a half of 1 percent) of the unpaid tax each month up to 25 percent. The IRS starts charging interest on the tax owed beginning the original due date even if an extension is filed.

How Can a Mistake on the Original Form 5330 Be Fixed?

  • If the original form 5330 was filed but done incorrectly, the company can file an amended form 5330. If the company overpaid the taxes on the original form 5330 and would like to receive a credit or refund, the company must include a detailed explanation and supporting evidence. If additional taxes are due, the additional information is not required.

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