Compensation & Benefits Alert - June 2014
Under the new one-year pilot program that went into effect on June 2, 2014, and ends June 1, 2015, plan sponsors and administrators of certain retirement plans may apply for relief from IRS late filing penalties on past-due annual reports (Form 5500 series). Rev. Proc. 2014-32 provides relief only to plan administrators and sponsors of retirement plans that are subject to the reporting requirements of sections 6047(e), 6058, and 6059, but not the reporting requirements of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”). Plans with late reports that are subject to Title I of ERISA in addition to these income tax provisions, and therefore not eligible for this relief program, can obtain reduced penalties by entering the Department of Labor’s Delinquent Filers Voluntary Compliance Program.