Filling Out Form 5500 Compliance Questions? Don’t.

On December 7, 2015, the IRS published Form 5500 and Form 5500-SF, which included new compliance questions that were optional for 2015 but expected to be required for 2016. On February 17, 2016, the IRS posted instructions on its website directing plan sponsors NOT to answer the compliance questions on the 2015 Forms 5500 and 5500-SF and related schedules H, I and R, because they were not approved by the Office of Management and Budget before the forms were published.

This information was first made public in a Feb 16, 2016, message to software developers for the electronic system by which Forms 5500 are submitted, EFAST-2. Revised versions of the 2015 instructions for both forms contain the new information regarding the optional questions.

The revised instructions provide the following guidance:

Form 5500 IRS Compliance Questions.
The IRS has decided not to require plan sponsors to complete lines 4o, 4p, and Part V (Trust Information) of Schedules H and I for the 2015 plan year. Plan sponsors should skip these questions when completing the form.

New Part VII (IRS Compliance Questions) was added to Schedule R for purposes of satisfying the reporting requirements of section 6058 of the Code. The IRS has decided not to require plan sponsors to complete these questions for the 2015 plan year and plan sponsors should skip these questions when completing the form.

Form 5500-SF IRS Compliance Questions.
The IRS has decided not to require plan sponsors to complete line 10j, Part VIII (Trust Information), and Part IX (IRS Compliance Questions). These questions were added to this Form for purposes of satisfying the reporting requirements of section 6058 of the Code.

For more information on compliance questions with the 2015 Forms 5500 and 5500-SF, please feel free to fill out the contact form or comment below.

Steve Beasy, CPA
Partner
Phone: 574.264.2247, x333