IRS Confirms Plan Sponsors, Other 8955 Filers Need Not Respond to Erroneous Penalty Notices

The IRS has confirmed that plan sponsors and others that filed Form 8955-SSA on time do not need to respond to penalty notices dated before Sept. 1, 2023. The IRS made the confirmation in the Sept. 1 issue of Employee Plans News. 

The IRS had contacted the American Retirement Association (ARA) on Aug. 25 to clarify issues regarding erroneous notices sent regarding supposed late filing of 2022 Form 8955-SSA, and to confirm that the notices were sent mistakenly due to a programming glitch which it fixed on Aug. 23.

As a result of a programming issue in the IRS system that receives Forms 8955-SSA, the IRS sent out CP 283-C penalty notices to plan sponsors who timely filed complete 2022 Forms 8955-SSA. The notices indicate a late or incomplete filing of Form 8955-SSA. 

ARA members were among those who received the notices erroneously informing them of the late filing, something many disputed. The ARA immediately contacted the IRS to report the matter and provide the information necessary for the agency to assess and resolve it.

Form 8955-SSA is a required annual filing with the IRS for those who file Form 5500. The filing deadline for Form 8955-SSA is the same as that for the Form 5500.