Rev. Proc. 2014-32 - Penalty relief pilot program for “small retirement plans” 

May 22:  The IRS today released Rev. Proc. 2014-32 that offers a one-year pilot program, beginning in June 2014, for small businesses with retirement plans that owe penalties for not filing certain information reporting forms.

Read Rev. Proc. 2014-32 [PDF 50 KB]

Under the pilot program, eligible small businesses may avoid penalties by filing current and prior year forms during this pilot program.

According to a related IRS release [PDF 21 KB]:

  • Plan administrators and sponsors who do not file an annual Form 5500 series return can face penalties of up to $15,000 per return.
  • Businesses that have already been assessed a penalty for late filings are not eligible for this program.
  • The pilot program is open only to retirement plans generally maintained by certain small businesses, such as those in an owner-spouse arrangement or eligible partnership.
  • Multiple late retirement plan returns may be included in a single submission.
  • If a retirement plan has delinquent returns for more than one plan year, penalty relief may be available for all of these returns.
  • Delinquent returns for more than one plan may be included in a single penalty relief request.
  • No filing fee will be charged during the pilot program.

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