UPDATED: Find the IRS Announcement HERE
On Aug. 25, the IRS contacted the American Retirement Association (ARA) to clarify issues regarding erroneous notices sent regarding supposed late filing of 2022 Form 8955-SSA. 
The IRS confirmed that the issue was a programming glitch, which it fixed on Aug. 23.
However, it emphasized that Form 8955-SSA is filed with the IRS through the FIRE (Filing Information Returns Electronically) system, not the EFAST system used for the Form 5500.
“The concern is that if a Form 8955-SSA is filed with EFAST, the form is not considered filed with the IRS, and the taxpayer will receive a penalty notice [as a result],” the IRS said. “EFAST, therefore, can’t be used to file a Form 8955-SSA.”
The IRS said that the erroneous messages were the result of a programming error on their part. The IRS further said it will be announcing in an upcoming newsletter that anyone who received the 8955-SSA late filing letter dated before Sept. 1, 2023 can ignore it. They do not plan to contact the plan sponsor in such cases; rather, they will provide a telephone number for plan sponsors to call for further information.
How This Arose
The confusion stemmed from the notices received by ARA members informing them of the late filing, something many disputed. ARA immediately contacted the IRS to report this issue and provide the information necessary for the agency to assess and resolve the matter.
Form 8955-SSA is a required annual filing with the IRS for those who file Form 5500. The filing deadline for Form 8955-SSA is the same as that for the Form 5500.
Using the Form 8955-SSA, plan sponsors report participants who separate from service with a deferred vested benefit but who did not receive full distribution of their benefit.
“One issue that has arisen is that according to some, plan sponsors sometimes neglect to update reporting on the forms for subsequent distributions, which may result in notification to participants of benefits that do not actually exist anymore,” ARA Chief Legal Officer Allison Wielobob explained.
She added that the fact that Form 8955-SSA is filed with the IRS through the FIRE (Filing Information Returns Electronically) system and not the EFAST system is not widely known.
The Form 8955-SSA information reported to the IRS is shared with the Social Security Administration. At retirement age, the SSA notifies affected individuals that they may have benefits under the retirement plans of prior employers.
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