Is Your Organization Ready to File its Form 5500 by July 31?
EFAST2 (ERISA Filing Acceptance System2) was up and running January 1, 2010, and it affects all plan filings going forward. Because of this the timing, delivery and filing of the form 550 0requires more planning; and in turn, more cost.
For all Plan types there is now mandatory electronic filing of the 5500 form and all attachments. In addition, the form must be electronically signed.
This is unlike the IRS electronic filing procedures for individual or business returns. In those cases, obtaining a signed form from the taxpayer allows the service provider to select a PIN and electronically transmit the return. Not so for the 5500 submission. Service providers cannot obtain these credentials on a client’s behalf, nor are they to be shared. Since the credentials are unique to each signer, the plan sponsor and the plan administrator (unless they are the same) must each request signing credentials from the DOL.
This submission is done on the DOL’s website and the credentials are usually given within 24 hours. And for those organizations that prepare their own 5500, filing credentials are required as well.
With EFAST2, all attachments must be converted to a Portable Document Format (PDF) file and attached to the 5500. This includes the independent qualified public accountant’s report. Because the filings are now electronically transmitted, they will be available for public inspection on the DOL website.
The DOL states that turnaround from submission acceptance to posting on its website can take place in 24 hours. Any schedules that required social security numbers, such as the Schedule SSA, have been eliminated. And you need to make sure attachments do not contain Social Security numbers or else your filing will be rejected.
Source: Mercadien, P.C. Certified Public Accountants by Elizabeth Y. LaCorte, CPA, CIRA
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