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Did Your Employee Benefit Plan Receive An IRS Penalty Notice?

iStock_000003899164LargeIt may be in error. The Internal Revenue Service has sent erroneous penalty notices (CP 283s) to Form 5500 filers who filed their returns before an extension (Form 5558) had been processed.

Help center representatives at the IRS have been advised to remove penalties when they are contacted. The representatives will then prepare a letter (Letter 168C) to explain that the penalty was removed, and that it was a “Service Error.”

If you are an administrator of multiple plans or have clients that need the penalty abated, you may remove up to five penalties per call. However, if you receive more than five penalty notices, you will need to request the abatement in writing from the IRS.

For more information, please contact your Miller Kaplan partner.