Every year HR departments of companies are overloaded with paperwork during the period of delivery of retirement plans of employees. Fortunately, there are some services created to give you more time to provide your employee plan returns. Form 5558 could be such a tool. And this is significant because late submission can lead to fines of up to $ 1100 per day.
This Form is a suitable tool to increase the period to submit certain documents. These include:
It is remarkable to note that completing 5558 does not provide a tax payment delay. It must be paid on time. Only a delay of 2.5 months for the submission of the reports indicated above is provided.
There are circumstances when the IRS independently increases the application deadline (for instance, in the event of a natural disaster or pandemic). In such a situation, all terms are automatically extended, and you do not need to fill out a special form. Follow the official news from the Revenue Service.
If there was no automatic renewal, but you do not have enough time to submit reports for all employees in the allotted period, then you should issue a separate 5558 for each 5550 form.
We suggest you make the process easier and use our form-building software to create this form. Thus, you will not miss essential lines and fill in everything faster.
Please find below illustrated step-by-step guide for completing the document.
Enter Identifying Information
On the first three lines in section A, fill in the placeholder name, address. Please do not abbreviate any part of the address, but enter it in full.
Enter EIN and SSN
In paragraph B, enter the EIN and SSN of the employer.
If the company does not have an EIN, then it must be obtained. To do this, you must fill out Form SS-4. In such a case, you will also need to attach this form when filing 5558.
Enter Plan Details
Next, you should write the details concerning the Plan:
Complete Part 2
First, you need to determine if you need to check box 1. It only needs to be checked if this is your first time submitting Form 5500 for the following Plan.
Further, in points 2 and 3, you need to indicate the date until which you want to extend. The appointed date cannot exceed a delay period of 2.5 months.
Please note that if you have already violated the deadline for submitting the forms, then completing 5558 will not take effect. But if everything is completed correctly, then your renewal application will be automatically approved.
Enter the Extension Date for Form 5330
If you also need more time to complete 5330, then enter the date on line 4. Unlike previous applications, here, the period can be extended up to 6 months.
Fill in the appropriate information in lines 4a, 4b, 4c.
Describe the Reasons
Explain in detail why you need to increase the deadline for filing Form 5330. These reasons must be justified and not dependent on you. There is no point in fake reasons. If in the future it is found that the reasons were false, the extension may be invalidated. In this event, great fines will follow.
Sign and Date
Enter the date for filling out the application. A signature is not required in all circumstances. If you have completed only Part 2, then you do not need to sign. But if Part 3 is also completed, then an appropriate person has to sign it. They can be:
Submit the Form
Using private delivery services, send the application to the IRS Center.