Form 8955-SSA penalties assessed in error, IRS says

In the latest issue of Employee Plans News, the IRS has indicated that approximately 4,000 plan sponsors received erroneous CP 283C, Notice of Balance Due for Incomplete/Late Penalties for their Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits. These erroneous notices were dated between July 28 – August 26, 2013.

The IRS said it has corrected the programming error that generated the notices and abated the erroneous penalties. The IRS has also sent letters apologizing for the error. The Service said that it is not necessary to reply to the notice or to contact the IRS. However, plan sponsors that received an IRS penalty notice dated between July 28 and August 26, 2013, for an issue unrelated to this programming error must respond according to the instructions in the notice.

Source: Employee Plans News, Issue 2013-3.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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