IRS Issues 2020 Form 5500-EZ, Instructions

The IRS has issued the Form 5500-EZ and its instructions for the Form 5500-EZ to be used in reporting concerning 2020. 
 
What’s New

The IRS notes that there is one change in the form since last year. The instructions have been updated to reflect the penalty changes under Code Section 6652(e) for a plan’s failure to file a return. The penalties have been increased to $250 a day, up to a maximum penalty of $150,000 per plan year applied to returns required to be filed after Dec.31, 2019. 

Filing Form 5500-EZ electronically under the EFAST2 filing system. Effective for plan years beginning after 2019, a one-participant plan or a foreign plan required to file an annual return can file Form 5500-EZ either:

1. electronically, using the EFAST2 filing system, https://www.efast.dol.gov/welcome.html or 
2. on paper with the IRS. 

Form 5500-SF is no longer used by a one-participant plan or a foreign plan in place of Form 5500-EZ. 

Amended Return. An amendment for a one-participant plan or a foreign plan that previously filed electronically using Form 5500-SF must file the amended return electronically.

Filing Tips

The instructions include a variety of filing tips in order to reduce the possibility of correspondence and penalties.

Filing the Form 5500-EZ on paper:
 

• Use the online, fillable 2019 Form 5500-EZ on the IRS website. Complete and download the form to your computer to print and sign before mailing. 
• Alternatively, use the official printed paper Form 5500-EZ that can be obtained from the IRS. The form is to be completed by hand, using only black or blue ink. The filer should be sure to enter information in the specific line fields provided and to sign and date the form before mailing. 
• Approved software may be used, if it is available. 
• Felt tip pens or other writing instruments that can cause signatures or data to bleed through to the other side of the paper may not be used. One-sided documents should have no markings on the blank side. 
• Paper should be clean without glue or other sticky substances. 
• Extraneous information such as arrows or notes on the form may not be submitted.
• Mail Form 5500-EZ for plan year 2019 is to be mailed to the IRS office in Ogden, UT, to be processed. 

Filing the Form 5500-EZ electronically:

• file online using EFAST2’s web-based filing system; or 
• file through an EFAST2-approved vendor.

Filing Date 

The IRS reminds that like the Form 5500, the Form 5500-EZ is to be filed by the last day of the seventh calendar month after the end of the plan year that began in 2020. For most plans, that will be July 31, 2021. However, since July 31 will fall on a Saturday this year, the return may be filed on Aug. 2, 2021.