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Part 21. Customer Account Services

Chapter 5. Account Resolution

Section 11. Employee Plan Accounts (Cont. 1)

21.5.11  Employee Plan Accounts (Cont. 1)

21.5.11.8  (07-01-2008)
Abatements/Adjustments on Form 5500 Accounts

  1. If the filer responds to the CP213 notice late or responds to the Form 5500 balance due notice(s) with the requested information, an abatement/adjustment may be needed.

  2. For the accounts assessed on BMF (MFT 74) all account actions will take place on the BMF side, no account updates will be on EPMF once the account is assessed and posted to BMF.

  3. BMF blocking series (BS) are used to indicate the nature of an adjustment. See Document 6209, ADP & IDRS information for a list of BS used on account adjustments.

21.5.11.8.1  (07-01-2008)
Abatements on Form 5500 BMF Accounts

  1. After the CP 283 balance due notice is sent, the filer may respond with the requested information. This includes any of the following:

    1. A copy of an approved extension.

    2. A copy of, or a statement that, an automatic extension was used (4868, 5558, 7004 or 2758).

    3. A reasonable cause statement that is valid according to IRM 20.

    4. The requested missing or incomplete information.

21.5.11.8.1.1  (07-01-2008)
Shipment of Source Documents

  1. Return documents (in separate folders labeled by type) to Campus Files within 7 workdays of input.

  2. Mail/route source documents immediately after Quality Review is complete. If the source document is retained beyond three (3) workdays for completion of certain ADJ54 transaction cases, input "R" in the remarks field of the input screen. Notify the Files Management Unit immediately of any anticipated shipment delays.

  3. Route all adjustment documents to Files marked Attn.: Files Management Unit. Complete Form 4442, Inquiry Referral or Form 8485, Assessment Adjustment Case Record. Include the IDRS sequence number in the top right corner before placing the documents in the employee folder.

  4. Prepare separate adjustment folders for each date and type of input. Label the outside of each folder as follows:

    1. IDRS number,

    2. Date

    3. Category of source documents,

    4. Sequence numbers (e.g., 01–14QR,) and

    5. Release date (e.g., 09/30/04.)

      Reminder:

      Local procedures may impose additional or alternate requirements.

  5. Prepare a separate folder for ADJ54 case actions. Date and sequentially number (legibly and readily available for files to recognize) the Form 8485 or other worksheets used to notate the case and account actions taken. This will help files maintain the integrity of the cases. Place other transactions, i.e., credit transfers, in a separate "Other Documents" folder and ship to files daily.

  6. Remember to insert your source documents into your folder as soon as you complete the IDRS account adjustment. If you forget to insert a document into the folder do not throw away. Obtain the DLN and send to files to be associated with your case file. If the source document is not included in your folder the Files Management Unit may contact you requesting the document.

  7. For additional information refer to IRM 21.5.2 - General Adjustments

21.5.11.8.2  (07-01-2008)
Abatements on Form 5500 NMF Accounts

  1. After the NMF bill is sent, the filer may respond with the requested information. This includes any of the following:

    1. A copy of an approved extension.

    2. A copy of, or a statement that, an automatic extension was used (4868, 5558, 7004 or 2758).

    3. A reasonable cause statement that is valid according to IRM 20.

    4. The requested missing or incomplete information.

  2. Control case on IDRS , MFT Code 74.

  3. Valid supporting documentation must be attached to the request. You must attach a copy of the ANMF transcript showing the posting transaction to request to have an abatement. The DLN may be needed to secure the original assessment document. If the DLN is not on the NMF Transcript, request a copy of the Index Card (Index File of TY53’s to obtain the DLN).

    Note:

    Agreement was made with HQ ANMF that for Form 5500 MFT 74 accounts a print screen of the account is acceptable in place of a transcript

  4. Before making any abatement you will need to input TC 470 by one of the following methods:

    1. If account is on IDRS, input TC 470.

    2. If account is not on IDRS and you are sure the penalty was assessed, prepare Form 3177 and forward to accounting.

  5. Form 1331-B, Notice of Adjustment, will be the posting document for the abatement. Prepare the following to abate penalty:

    • Form 1331-B, Notice of Adjustment.

    • Enter amounts to be abated, credited or refunded in the appropriate column for an example of Form 1331-B.

    • If the abatement results in an overpayment, indicate the disposition of credit, offset, refund, etc.

    • If refunded, follow manual refund procedures and request an outstanding balance check.

    • Enter "From" date on Form 3753 for interest computation purposes. A separate "From" date must be entered for each payment date.

    • Indicate if the account is in TDA Status.

    • Obtain history of account on MARS.

  6. Form 1331-B can be downloaded and used from the Multimedia Publishing Web page. Print 3 copies, "ALL" 3 copies must be signed by the authorized official. The authorized official's signature must be on the SF210 file in the Manual Refund area.

    Note:

    The Director is ultimately responsible for the process, however the responsibility is generally delegated down via Delegation Order.

  7. Form 2468 — Obsolete and is not required for the Form 1331-B.

  8. All unpaid portions of assessed penalties must be abated before any portion of the total assessment can be credited or refunded.

  9. Attach a History Sheet and other backup information (TP’s letter requesting abatement, etc.) to the NMF Transcript. (Staple the information to the back of the NMF Transcript). Staple Form 1331-B to the front of case.

    Note:

    Each Form 1331-B must have its own complete set of documentation

    Note:

    Per local agreement a screen print of the NMF Account will be used in place of the NMF Transcript for Form 5500 accounts. The account must show the assessment before you can request an abatement.

  10. Place account in "M" status using Activity Code "1331 B–Prep."

  11. Update ANMF with appropriate remarks for history, example " 1331-B sent and the date that it was sent" .

  12. Send Form 1331-B package to ANMF at the appropriate campus via Form 3210, use separate F3210s per DO

    • Abatement requests will be transhipped to CSPC & PSPC daily as the abatement requests are completed via overnight express. Do Not hold the requests.

      Note:

      CSPC contact phone number to be used on the over night mail form is, 859-669-4523.
      PSPC contact phone number to be used on the over night mail form is, 215–516–2275.

    • Sort abatement requests per DO. Add to remark field on Form 3210 which DO is being sent.

    Note:

    A copy of all Form 3210s will be routed to the TE/GE Program Analyst with oversight of the project.

  13. The following address must be used for all 1331-B requests sent to CSPC

    Internal Revenue Service
    Manual Refunds Scheduling Team 203, Stop 2107
    201 W. Rivercenter Blvd.
    Covington, KY 41011

  14. If Form 1331-B is part of the Manual Refund package going to CSPC send to the following address:
    Internal Revenue Service
    Manual Refunds Scheduling Team 203, Stop 2107
    201 W. Rivercenter Blvd.
    Covington, KY 41011

  15. If Form 1331-B is part of a "TAS or OAR" case going to PSPC send them to the following address:
    Internal Revenue Service
    11601 Roosevelt Blvd
    Drop - N-103A
    Philadelphia, PA 19154

  16. If an NMF notice should be stopped, prepare Form 3177, attach a copy of ANMF screen print and forward to appropriate campus. Put the 23C date of the assessment on Form 3177. See IRM 21.5.11.7.4.

  17. Notate TC470 CC90 on Form 3177 unless account is in status 89 or 53.

  18. If account is in status 89 or 53 no notice is generated, no action is required.

  19. If the account is in another campus, prepare the documents and route them to the appropriate campus using local procedures.

  20. Monitor accounts weekly in "M" status to ensure that abatement has posted to the NMF database.

  21. All cases in "M" status must be checked prior to close of business on Friday and the EPMF control base closed if abatement has posted.

  22. If abatement did not post to NMF after 30 days from the time the request was sent follow the steps below:,

    • Pull Form 3210 acknowledgement copy to verify the request was received

    • Contact CSPC NMF Team 108 Lead at 859–669–2599 to do additional research as to why the abatement has not posted.

      Note:

      Do not prepare a duplicate abatement unless the point of Contact at CSPC NMF verifies that the abatement was lost. No duplicate requests will be made without managerial approval.

  23. Duplicate Abatements requests MUST be marked on the Form 3210 as an expedite case to address above and sent to the Lead or Specialist's attention

  24. Update control base as DUP1331BMMDD

  25. Close the EPMF control base when the NMF abatement posts.

  26. A copy of all Form 3210s will be routed to the TE/GE SPP Program Analyst with oversight of the project at M/S 1110.

21.5.11.8.2.1  (07-01-2008)
Form 1331–B - Notice of Adjustment

  1. Form 1331-B is a 3 part snapset used to show the appropriate adjustment made to the Non-Master File account. The Form 1331–B is used for abatement of penalty, tax, and/or interest for the reduction of the assessment which may result in a credit transfer, refund issuance or both. Form 1331-B instructions:

    1. In the box, directly under the Form 1331–B enter the appropriate DO code
      filers address is Michigan District Code use 38 = DO 38
      filers address is Indiana District Code use 35 = DO 35
      All others District Code use 31 = DO 31

    2. Your tax return form number block - Enter the appropriate form number, the three digit plan number and the abstract which corresponds with the abstract on the assessment, i.g. 5500 / 003 / 167

    3. Tax Period block - Enter Period Ending and MFT 74, i.g. 200212 / MFT 74

      Note:

      If abatement is for a dummy period you will need to indicate in block

    4. Name and address of filer block - enter complete name and address

    5. Directly below the Name and address block - Indicate the TIN, i.g. 18-9999999

    6. Section I - Computation of Decrease in Liability block - provide reason for action and the dollar amount.

    7. Date block - date the request is prepared, ie 10302003

    8. Prepared by block - Employee IDRS Number of the originator, do not use the unit’s number.

    9. Section II - Elimination block - Enter DLN for the TC 240 and the money amount

    10. Credit (amount overpaid) block - TC 241 "MUST" be entered on page 2 and 3 in red

    11. Total decrease in liability eliminated and credited block - Enter money amount

    12. Total amount eliminated and credited block - Enter money amount

    13. District or Service Center block - OAMC

    14. Director block - Authorized signature

      Note:

      ALL three copies must be signed by the authorized official, the authorized signature must be on the SF210 file.

    15. Date block - Date authorized signature was signed

  2. The following address must be used for all 1331-B requests sent to CSPC

    Internal Revenue Service
    Manual Refunds Scheduling Team 203, Stop 2107
    201 W. Rivercenter Blvd.
    Covington, KY 41011

21.5.11.9  (07-01-2008)
Form 3244 Payment Voucher

  1. When a payment is received with a Form 5500/5500-EZ, the DOL vendor will forward the payment to IRS. Deposit Activity will prepare Form 3244, Payment Posting Voucher. The original Form 3244 will be numbered, batched, and forwarded to BMF as a (full paid) Form 5500 delinquency penalty assessment under Section 6652(e).

    • Review the return image, transcript, and Form 3244 to ensure that the penalty was assessed correctly (including proper IRC section).

    • If additional penalties should be assessed, or if a portion should be abated, process in accordance with existing instructions.

    • If the return is a Welfare Plan return (the plan number is 501–999 and Part II, line 10c is not checked or Schedule F is not present, which indicates a fringe benefit plan), refund any amount that was paid. IRS has no authority to collect or assess any penalty on Welfare Plans.

21.5.11.10  (07-01-2008)
Form 2424 - Account Adjustment Voucher

  1. Form 2424 is used to transfer credits from MF to MF and MF to NMF. It consists of credit copy (pink) and debit copy (blue). The form is prepared in duplicate with the credit copy as the original. For additional information refer to IRM 4.4.8 Credit Transfers and Miscellaneous Adjustments.

  2. Transfer credits that are made available due to decreases of previously assessed tax using transaction codes 820 (debit) and 700 (credit). If allowable interest is available for transfer, use transaction codes 850 (debit) and 730 (credit)

21.5.11.11  (07-01-2008)
Routing Correspondence

  1. Loose Schedules—Local procedures will be developed with the Ogden TE/GE Processing Center Staff.

  2. When any of the following forms: 1023, 1024, 1028, 5300, 5303, 5305, 5307, 5309, 5310, 5310–A, or 6406 (applications for a determination) are attached to a return or correspondence, detach the application and send to:

    CSPC
    P.O. Box 192
    Covington, KY 41012–0192

  3. Return Pension Benefit Guaranty Corporation (PBGC) schedules (and attachments) to the following address:

    Pension Benefit Guaranty Corporation
    P.O. Box 64880
    Baltimore, MD 21264–4880

  4. If the form is a 3672 (obsolete), 3672–A (obsolete), 4461, 4461–A, 5306, or 5306 SEP with no notations of National Office action, forward the application to Headquarters at:

    Internal Revenue Service
    Employee Plans
    Commissioner, TE/GE
    P.O. Box 27063
    McPherson Station
    Washington, DC 20038
    Attn: SE:T:EP:RA

  5. Requests for Change in Plan/Trust Year—If an original Form 5308 with neither approval or disapproval is attached to the correspondence, forward to the Headquarters using the address in (4) above.

  6. If an unprocessed amended Form 5500 series return is received and there is no open Del Assess/CP 213 Notice or penalty abatement case, send to EBSA for processing via Form 3210, see address below.

    EBSA\/Vangent Inc.
    P.O. Box 7043
    Lawrence, KS 66044-7043

  7. If correspondence is received in lieu of an amended return:

    • Research for a posted return.

    • If the research shows a CCC "N" or " I" , look for an open control base to which this correspondence belongs.

    • If an abatement is necessary, follow the procedures in IRM 21.5.11.7, Processing Over assessments.

  8. If a loose schedule is received in correspondence, use the following chart to determine proper disposition. When routing returns to the vendor they must be routed via Form 3210.

    Note:

    When ever possible attach the original envelope to the document before routing to the vendor.

    IF… Then…
    Responses to NC letters sent to filers requesting additional information EBSA/Vangent Inc.
    P.O. Box 7045
    Lawrence, KS 66044–7045
    Loose Schedules A, C, D, E, F, G, H, I, R, T, for Form 5500 Destroy
    Loose Schedules B, for Form 5500 received from DOL vender, EBSA or IRS Destroy
    Loose Schedules B for Form 5500 received directly from filer EBSA/Vangent Inc.
    P.O. Box 7045
    Lawrence, KS 66044–7045
    Loose Schedules MB or SB, for Form 5500 received from DOL vender, EBSA or IRS Destroy
    Loose Schedules MB or SB for Form 5500 received directly from filer EBSA/Vangent Inc.
    P.O. Box 7045
    Lawrence, KS 66044–7045
    Loose Schedule P, for Form 5500 OAMC, EP Accounts M/S 6270
    Loose Schedule SSA for Form 5500 question 1(b) checked EBSA/Vangent Inc.
    P.O. Box 7043
    Lawrence, KS 66044–7043
    Loose Schedule SSA for Form 5500 question 1(b) "not" checked Destroy
    Form 5500/5500-EZ (received from Field Office, secured return) EBSA/Vangent Inc.
    P.O. Box 7049
    Lawrence, KS 66044–7049
    Form 5500-EZ (all others) EBSA/Vangent Inc.
    P.O. Box 7042
    Lawrence, KS 66044–7042
    Form 5500 (all others) EBSA/Vangent Inc.
    P.O. Box 7043
    Lawrence, KS 66044–7043
    PDS Address for all Form 5500 Series Returns EBSA/Vangent Inc. Attn: EFAST
    3833 Greenway Drive
    Lawrence, KS 66046

  9. Requests for an EIN—Route to Entity control, M/S 6273.

21.5.11.11.1  (07-01-2008)
Late Replies - MFT 74 NMF Accounts

  1. If the filer’s reply to a CP 213 proposal letter is returned after the Form 5734 was prepared and forwarded to CSPC NMF Unit for assessment, and reasonable cause was established for either lateness, incompleteness or both:

    1. Check the ANMF Transcript to see if any penalty was charged.

    2. Check ANMF for a penalty. If not found, suspend the reply for no more than 30 days waiting for the assessment to post. If not posted after 30 days, refer to your manager.

    3. If charged, follow the over assessment procedures in 21.5.11.7. Be sure to consider the lateness versus incompleteness issue(s) separately.

  2. If assessment request has not been prepared (Form 5734) mark the case for destruction, input TC 971 with appropriate action code on EMFOLT and close control base.

21.5.11.11.2  (07-01-2008)
Late Replies -MFT 74 BMF Accounts

  1. If the filer’s reply to a CP 213 proposal letter is returned after the TC 971 A/C 292 was input on EMFOL and reasonable cause was established for either lateness, incompleteness or both, input abatement transaction to the BMF Account. Refer to for abatement procedures.

  2. If the filer’s reply to a CP 213 proposal letter is returned after the TC 971 A/C 292 was input on EMFOL and reasonable cause was denied, input TC 290 BLK 98 and generate the 854C letter.

21.5.11.11.3  (10-13-2005)
Official Denied Form 5500 Appeal Requests

  1. All official Form 5500 denied appeal cases are to be routed to the following address:
    Internal Revenue Service
    Attn: Ogden Appeals Office M/S 8500

  2. Inform the filer that the case will be transferred to the appeals office and that they will be contacting them within 90 days. The 86C letter is to include the information to the filer that the cases is being transferred to the Appeals office.

21.5.11.12  (07-01-2008)
Form 5500 Credit/Debit Module Balance Listing

  1. The Form 5500 Credit/Debit Module Balance Listing is generated monthly and routed to OAMC, EP Accounts for resolution. The listing includes all Form 5500 out of balance accounts that have posted to Master File and have either a credit or debit balance on the module. Time frames for working the Credit/Debit Listings is as follows:

    • Modules with credit balance - must be worked within 30 days to prevent erroneous notices and to correct misapplied payment during processing.

    • Balance Due modules - January 2008 modules showing a balance due is no longer required to be worked by EP Accounts. The CP295 generates on all Form 5500 balance due modules.

    T The following information is recorded on the listing:

    • Transaction date

    • EIN, SSN

    • MFT

    • Tax Period

    • Plan number

    • Module Balance

    • DLN

    • A "*" shown under the Last Month column indicates the module was recorded on the prior month listing.

21.5.11.12.1  (07-01-2008)
Form 5500 Credit Module Balance

  1. If the overpayment belongs to a different plan number, tax period, or EIN transfer the payment to the correct account using CC ADD/ADC 24. Do not correspond with the filer.

  2. Research to determine if the payment was submitted by the filer as a prepayment to the proposed penalty on the CP213 notice. If research shows it was a prepayment, follow procedures for Form 5500 penalty assessments.

  3. If the credit module balance can not be resolved using the procedures above or a balance remains after the above steps have been taken, refer to the table below:

    Form 5500 Credit Module Balance
    If . . . And . . . Then . . .
    The account is in a credit status basic IDRS research determines where the payment should be transferred Transfer the payment to the applicable module using CC ADD/ADC 24, or Form 2424 if applicable
      additional credit application can not be determined through basic IDRS research

    • Initiate telephone contact with the filer. Two attempts must be made during regular business hours.

    • If unable to contact by phone send a letter to the filer explaining account status. Print a copy of letter for the case file, Suspend case for 45 days (30 day response time)

    • If filer responds to the letter with additional information, follow their instructions

    • If no reply to the correspondence, transfer credit to Excess Collections (XSF-6800 Account)

  4. If the filer states they have overpaid the account by submitting duplicate payments and requests the excess credit be refunded, instruct the filer to submit a request to have the money refunded.

21.5.11.12.2  (07-01-2008)
Transferring Excess Credit

  1. When research determines that the overpayment does not belong to the Form 5500 module, or the filer does not respond to our correspondence, the excess credit(s) must be transferred to either the Unidentified Remittance File (URF - 4620 Account) or Excess Collection File (XSF-6800 Account). This is accomplished by preparing Form 2424 (payment date 11 months or less) and/or Form 8758 (payment date is older than 11 months).

  2. Credit(s) that have been previously applied to MF from the 6400 Account require two credit transfers. Form 2424 in duplicate, and a Form 8758 must be prepared. Form 2424 is used to transfer the credit back to the 6400 Account and Form 8758 is used to transfer the credit from the 6400 Account to either URF or XSF.

  3. A separate Form 2424, in duplicate, and/or a Form 8758 must be prepared for each credit that needs to be transferred. Credits remain in URF until the payment date reaches one year old. It will then automatically be dropped from URF to XSF. Unpaid credits will remain on IDRS in XSF for 7 years after the XSF entry date.

    If . . . Then . . .
    the credit is 11 months old or less

    • Prepare two Forms 2424, in duplicate

    • Attach supporting documentation to both sets of Form 2424

    • Route all forms to appropriate M/S
    the credit is over 11 months old

    • Prepare Form 2424 in duplicate to transfer the credit from MF to the 6400 Account.

    • Prepare Form 8758 to transfer credit from 6400 Account to 6800 Account.

    • Attach supporting documentation.

    • Route all forms to appropriate M/S

  4. For additional information refer to IRM 3.17.220 - Excess Collection File and IRM 3.17.10 Revenue Receipts.

21.5.11.13  (07-01-2008)
General Form 5330 Processing

  1. The following subsections contain instructions on processing Form 5330, Return of Excise Taxes Related to Employee Benefit Plans. Beginning January 2001, Forms 5330 are processed to the BMF. Prior to that date, all assessments were made on NMF. Forms 5330 period ending prior to 198412 must still be processed on NMF.

    Note:

    No new NMF assessments should be made unless the return cannot be processed to the BMF (e.g. quick assessments, period endings prior to 198412).

  2. Form 5330 is used to report tax on the following transactions:

    • Failure to meet minimum funding standards (IRC Section 4971).

    • Failure to correct minimum funding (IRC Section 4971(b))

    • For Plan Years beginning after December 31, 1995, tax on failure to pay liquidity shortfall (IRC Section 4971(f)).

    • Nondeductible employer contributions to qualified plans (IRC Section 4972).

    • Excess contributions to IRC Section 403(b)(7)(A) custodial accounts (IRC Section 4973).

    • A prohibited transaction occurring after December 31, 1974 (IRC Section 4975).

    • A disqualified benefit provided by funded welfare plans (IRC Section 4976).

    • Excess fringe benefits (IRC Section 4977).

    • Certain ESOP (Employee Stock Ownership Plan) dispositions (IRC Sections 4978 and 4978A).

    • Excess contributions to plans with cash or deferred arrangements (IRC Section 4979).

    • Prohibited allocations of qualified securities by an ESOP (IRC Section 4979(A)).

    • Reversion of qualified plan assets to employers (IRC Section 4980).

    • Tax on Failure to provide notice of significant reduction in future accruals (IRC Section 4980(F))

    • See Form 5330 instructions (if necessary) for additional filing information.

  3. Whether a Form 5330 is assessed on NMF or BMF, a TC 154 on the EPMF indicates that a Form 5330 was filed. This information is available from CC EMFOL. (Form 5330 processed before January 2001 should be available from ERTVU; others will be available from BRTVU).

  4. Abatement of tax is occasionally required on Form 5330 (exception—erroneous service assessments). Refer to Processing Over assessments Section of EPMF.

  5. Specific instructions for filing Form 5330 are found on the form itself and the Instructions for Form 5330.

  6. When a Form 5330 needs to be re-input due to an IRS error attach a Form 13133, Expedite request, to the return before sending it for re-input. Expedite requests are processed on a 6 day cycle.

  7. See Table below for Form 5330 due dates. For additional information refer to Form 5330 Instructions.

    Taxes Related to Employee Benefit Plans
    Code
    Sect.     		Description Due Date
    4971(a) Failure to meet minimum funding standards (IRC 412). 7th month after the end of the employer’s tax year OR 8 1/2 months after the end of the plan year that ends with or within the tax year.
    4971(F) Tax on Failure to pay Liquidity Shortfall 7th month after the end of the employer’s tax year OR 81/2 months after the end of the plan year that ends with or within the tax year.
    4971(G)(2) Tax on failure to comply with a funding improvement or rehabilitation plan. 7th month after the end of the employer’s tax year OR 81/2 months after the end of the plan year that ends with or within the tax year.
    4971(G)(3) Tax on failure to meet requirements for plans in endangered or critical status. 7th month after the end of the employer’s tax year OR 81/2 months after the end of the plan year that ends with or within the tax year.
    4971(G)(4) Tax on failure to adopt rehabilitation plan. 7th month after the end of the employer’s tax year OR 81/2 months after the end of the plan year that ends with or within the tax year.
    4972 Tax on nondeductible contributions to qualified plans. IRC 401(a), 403(b), 408(k) 7th month after the end if the tax year of the employer or other person who must file this return.
    4973 (a)(3) Tax on excess contributions to 403(b)(7)(A) Custodial Accounts 7th month after the end if the tax year of the employer or other person who must file this return.
    4975 Tax on Prohibited Transactions. 7th month after the end if the tax year of the employer or other person who must file this return.
    4976 Tax on disqualified benefits for funded welfare plans. 7th month after the end if the tax year of the employer or other person who must file this return.
    4977 Tax on Excess Fringe Benefits. 7th month after the end of the calendar year in which the excess fringe benefits were paid to your employees.
    4978   7th month after the end of the tax year of this employer or other person who must file this return.
    4979 Tax on Excess Salary Reduction Contributions to certain plans (i.e. IRC 401(k)(8)(B) and 401(k)(6)(C) 15th month after the close of the plan year to which the excess contributions or excess aggregate contributions relate.
    4979A Tax on certain prohibited allocations of qualified ESOP securities 7th month after the end of the tax year of the employer or other person who must file this return.
    4980 Tax on Reversions of Qualified Plan assets to employer. Month following the month in which the reversion occured.
    4980(F) Tax on failure ro provide notice of significant reduction in future accurals. Month following the month in which the failure occurred.

    Note:

    If the filing due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

21.5.11.14  (07-01-2008)
Statute of Limitations

  1. With the exception of prohibited transactions the statute of limitation (SOL) for assessment of taxes expires three years from the due date of the Form 5330 return or the date the return is filed, whichever is later. (See IRC 6501(a)) a return is deemed filed on the due date of the return if filed on or before its due date.

  2. For Form 5330 filed for IRC 4975 excise tax, the three year statute of limitations for assessment of taxes will commence to run on the later of the date the related Form 5500 series return is filed or the date due, if the prohibited transaction is sufficiently disclosed (See IRC 6501(i)(1)). See IRM 4.71.5, Employee Plans Examination of Returns for assistance in computing statutes under IRC 4975.

  3. The statute of limitations for prohibited transactions is extended to six years if the prohibited transaction is not adequately disclosed.

  4. Other than prohibited transactions the statutory period for assessment of tax is six years from the date the return is filed or deemed filed, whichever is later, in cases where there has been an omission of more than 25% of the excise tax due under Subtitle D (Chapters 41 through 44)

  5. BMF will automatically calculate a statute of limitations date for prohibited transactions three years from the later of the date the Form 5330 is filed or the due date. However, BMF currently incorrectly calculates the statute of limitations date for prohibited transactions, as there is no linkage to the Form 5500 series return statute date.

  6. Refer to "The statute control procedures" discussed in IRM 4.71.9 for additional information on statute dates for Form 5330s.

21.5.11.15  (07-01-2008)
NMF Form 5330 Processing

  1. Most Forms 5330 are processed to the BMF. Forms processed prior to January 1, 2001 were processed to the NMF. Therefore, some claims for refunds and amended returns, must address the NMF if the original payment or assessment posted to the NMF.

  2. If filer claims a refund on Form 5330 as a result of the payment received with Form 5558 Extension, complete Form 1331-B with appropriate TC and route via F3210 to appropriate NMF campus

    Note:

    NMF is only worked at CSPC

  3. Amended Forms 5330 must be compared with the original Form 5330, using CFOL where possible, and any additional taxes must be assessed using Form 5734 (or Form 3354). Any remittance amount shown must be considered in the calculation. Include any interest and penalties that are appropriate. Be certain to use the TIN in Box B for the assessment. It could be either an SSN (for an individual), or an EIN (from a corporation, trust, partnership, exempt organization, or a pension/welfare plan). Any reductions in tax or request for refunds must be handled as an over assessment in accordance with IRM 21.5.11.7.

  4. Associate the amended return with the original assessment.

21.5.11.16  (07-01-2008)
BMF Form 5330 Processing

  1. Forms 5330 are processed to the Business Master File (BMF).

  2. The following section provides procedures for the Form 5330 that is processed to BMF

  3. More than one Form 5330 can post to the same Tax Module. The first Form 5330 to post will be a TC 150. All subsequent, non-amended Forms 5330 that post to the same EIN/Plan Number/Tax Period will post as a TC 973. The information from these returns is available on CC BMFOL.

  4. An amended return for a Form 5330 must have all four of the elements below identical, if any one of the elements is different process the return as a subsequent return, TC 973:

    • EIN

    • Period Ending

    • Plan Number

    • Abstract - Tax Section

  5. A true "dup" for a Form 5330 must have all five of the elements below identical, if any one of the elements is different process the return as a subsequent return or an amended return. Refer to elements for an amended return above.

    • $ amount reported for Excise Tax

    • EIN