Regulatory and Legislative

IRS Provides 2024 Electronic Filing Relief for Form 5330

The IRS notes in a new post that electronic filing of Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, will not be required for the remainder of the 2024 taxable year—confirming that taxpayers may continue to file by paper. Form 5330 is used to report the payment of excise tax for a variety of issues, including prohibited transactions (i.e., late deposits), excess contributions, reversion of qualified plan assets, excess benefits paid, etc.

While electronic filing is generally required for taxable years ending after December 31, 2023, if the filer is required to file at least 10 returns of any type during the calendar year that Form 5330 is due, the IRS acknowledges that there is currently only one authorized e-filing provider for Form 5330. Filers should document the lack of authorized vendors as the reason for filing by paper.