Should i file form 5310

We examined 47 Form returns to obtain a snapshot view of qualified plans where the Form reflected that the plan had terminated, yet the IRS had no record that a Form , Application for Determination Upon Termination, had been submitted. However, a favorable determination letter upon plan termination from the IRS gives reliance that the plan document is qualified in form at the time of plan termination. Overall, the terminating plans reviewed were generally in compliance.

However, there were some plans that failed to comply with reporting, form or operational requirements. DOL has a Delinquent Filer Voluntary Compliance Program , which permits plan administrators to pay reduced penalties for voluntarily complying with their annual reporting requirements.

For defined benefit plans subject to PBGC standard termination procedures, filing Form extends the deadline for completing distributions, provided it is filed before or concurrently with Form which notifies the PBGC of the termination. For all types of plans, employers are not required to wait until receiving the determination letter to distribute benefits, but many do wait so that they have assurance that the distributions will be tax-favored.

The Form application is extensive and can require substantial administrative work, as well as input from service providers,to complete. The cost of preparing the application —plus the filing fee —is often a deterrent to employers, especially those with small plans and limited plan assets. However, sometimes filing is required as part of a merger or acquisition or bankruptcy proceeding. Employers filing Form should be prepared for a long wait —the IRS can take months to process Form applications, and if the employer waits until receiving the determination letter to make distributions, additional Forms and audits for large plans will be required for each year until distributions are complete.

Submit a question Check your notifications Sign in to the Community or Sign in to TurboTax and start working on your taxes. Enter a search word. Turn off suggestions. Enter a user name or rank. These tax returns are generally due on July However, July 31, is a Saturday, so the due date is Monday, August 2, Rev Proc , IRB When terminating a plan, an applicant must submit a completed Form and provide additional required information.

IRS will continue to accept paper versions of Form through July 31, After July 31, , all Form applications must be submitted electronically.