Delray Beach, Florida (PRWEB) May 27, 2014
Many small businesses have been saddled with penalties for not filing reporting documents pertaining to their retirement plans. The Internal Revenue Service announced this week that it will begin a pilot program to help small businesses in this position. During this pilot one-year period, small businesses will be able to file current and prior year forms to avoid penalties. The details of the program can be found on the IRS website at Revenue Procedure 2014-32.
The penalties that small businesses can face in this situation can be up to $15,000 per return. Moreover, many businesses were unaware that this filing requirement even existed. The Internal Revenue Service hopes that the new program will allow good-intentioned business to come into compliance with the filing requirements. Pension plan administrators must file an annual Form 5500; however, this program is only available to certain small businesses such as owner-spouse arrangements.
It is an attempt to simplify the process for businesses owners and retirement plan administrators' multiple plan returns will be allowable in a single submission. Furthermore, if returns are delinquent for more than one year, relief may still be granted and there will be no filing fee during the first-year pilot phase.
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