Instructions for Filling Out Form 5330

This document offers comprehensive instructions for completing Form 5330, used to report various excise taxes related to employee benefit plans. It covers who must file, taxes included, filing deadlines, and step-by-step guidance for filling out the form and its schedules.

In this article, we'll provide information on Form 5330 and a step-by-step guide on how to fill it out.

What is Form 5330?

Form 5330, titled "Return of Excise Taxes Related to Employee Benefit Plans," is used to report various excise taxes associated with employee benefit plans. These taxes include prohibited transactions, failures to meet certain funding standards, and other specific tax liabilities outlined in the Internal Revenue Code sections 4965, 4971, 4972, 4973, 4975, 4976, 4977, 4978, 4979, 4979A, 4980, and 4980F. The form is mandatory for employers or individuals required to file at least 10 returns of any type during the calendar year that the Form 5330 is due, for tax years ending on or after December 31, 2023.

Who Must File Form 5330?

Entities or individuals responsible for certain excise taxes related to employee benefit plans need to file Form 5330. This includes plan entity managers involved in prohibited tax shelter transactions, employers liable for taxes due to failure to meet minimum funding standards, nondeductible contributions to qualified plans, excess contributions to certain accounts, and participation in prohibited transactions, among others. The specific individuals or entities required to file can vary based on the type of excise tax being reported.

Form 5330 Tax Filing Deadlines and Due Dates

• Section 4965: 15th day of the 5th month following the close of the entity manager's tax year during which the tax-exempt entity becomes a party to the transaction.
• Section 4971: 15th day of the 10th month after the last day of the plan year.
• Section 4972: Last day of the 7th month after the end of the tax year of the employer or other person who must file this return.
• Section 4973(a)(3): Last day of the 7th month after the end of the tax year of the individual who must file this return.
• Section 4975: Last day of the 7th month after the end of the tax year of the employer or other person who must file this return.
• Section 4976: Last day of the 7th month after the end of the tax year of the employer or other person who must file this return.
• Section 4977: Last day of the 7th month after the end of the calendar year in which the excess fringe benefits were paid to your employees.
• Section 4978: Last day of the 7th month after the end of the tax year of the employer or other person who must file this return.
• Section 4979: Last day of the 15th month after the close of the plan year to which the excess contributions or excess aggregate contributions relate.
• Section 4979A: Last day of the 7th month after the end of the tax year of the employer or other person who must file this return.
• Section 4980: Last day of the month following the month in which the reversion occurred.
• Section 4980F: Last day of the month following the month in which the failure occurred.

Form 5330 Late Payment Penalty

The penalty for late payment of tax on Form 5330 is ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax.

Step-by-Step Instructions for Form 5330

Here are the step-by-step instructions for filling out Form 5330:

1. Filer Tax Year: Enter the tax year of the employer, entity, or individual on whom the tax is imposed using the plan year beginning and ending dates entered in Part I of Form 5500 or by using the tax year of the business return filed.
2. Item A. Name and Address of Filer: Enter the name and address of the employer, individual, or other entity liable for the tax. Include suite, room, or other unit number after the street address. If the post office does not deliver mail to the street address and a P.O. box is used, show the box number instead.
3. Item B. Filer's Identifying Number: Enter the filer's identifying number, which is either the employer identification number (EIN) or the social security number (SSN), but not both.
4. Item C. Name of Plan: Enter the formal name of the plan or enough information to identify the plan.
5. Item D. Name and Address of Plan Sponsor: Enter the name and address of the plan sponsor, including suite, room, or other unit number after the street address.
6. Item E. Plan Sponsor's EIN: Enter the nine-digit EIN assigned to the plan sponsor.
7. Item F. Plan Year Ending: Enter the plan year ending date in month/date/year order.
8. Item G. Plan Number: Enter the three-digit number assigned to the plan by the employer or plan administrator.
9. Item H. Amended Return: If filing an amended Form 5330, check the box on this line.
10. Filer's Signature: Sign and date the form, providing a daytime phone number.
11. Preparer's Signature: If the form is prepared by someone other than the filer, the preparer must sign and complete the required information.
12. Complete the Applicable Parts and Schedules: Depending on the specific excise taxes being reported, complete the relevant parts and schedules of Form 5330, following the detailed instructions provided for each section.

These steps provide a general overview of how to fill out Form 5330. For detailed information on specific parts and schedules, refer to the full instructions on the IRS website.

How to Submit Form 5330

To submit Form 5330, you can either file electronically using the IRS Modernized e-file (MeF) System through an IRS Authorized e-filing Provider or, if not subject to the electronic filing requirement, mail the completed official IRS printed Form 5330 to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201. Ensure that all required information, such as filer tax year, name and address of filer, filer's identifying number, name of plan, name and address of plan sponsor, plan sponsor's EIN, plan year ending, plan number, and filer's signature, is included in the form. If filing an amended return, check the appropriate box and follow the specific instructions for amending the return.

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