Automatic Extension for Filing Form 5500

The U.S. Department of Labor has announced an automatic two and one-half month extension of the filing deadline for Form 5500s. The Form 5500 format was completely revamped for 1999 to make them computer readable and to eliminate unneeded questions.

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"We want to allow filer more time to make a smooth transition to the new computer scannable formats for the form 5500 Series and the EFAST computerized form processing system," said Alan Lebowitz, depute assistant secretary for program operations at the Pension and Welfare Benefits Administration (PWBA), a division of the DOL. This extension is granted by the DOL, IRS and PBGC.

Currently, filers can get an automatic two and one-half month extension of time to file their Form 5500 Series by filing IRS Form 5558 (Application for Extension of Time to File Certain Employee Plan Returns). In response to filer requests, the agencies agreed to grant transition-year relief from the requirement to file a Form 5558 to obtain an extension. Specifically, if your plan is on a calendar year basis, your Form 5500 would normally be due on or before July 31, 2000. With the automatic extension your filing will not be due until October 16, 2000. The agencies emphasized that this automatic extension cannot be extended further by filing a Form 5558,

NOTE TO NON CALENDAR YEAR PLANS: If your plan is not on a calendar year basis you may not rely on this automatic extension. If your Form 5500 is normally due after July 31, 2000 you must still timely file a Form 5558 to secure a two and one half month extension.

The DOL also announced that the agencies do not intend to impose late filing penalties for the 1999 Form 5500 Series in cases where, in spite of a good faith effort to meet deadlines, filings are delayed because of difficulties with the new forms. Legitimate transition-year difficulties will be considered in granting "reasonable cause" abatements of penalties for delinquent 1999 Form 5500s.

If you would like information about your plan’s filing requirements and frequently asked questions and answers, you can visit www.efast.dol.gov You can call us at (860) 313-5470 or contact us and we can help you sort out your filing requirements.