[Federal Register Volume 85, Number 172 (Thursday, September 3, 2020)]
[Notices]
[Pages 55077-55078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19449]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for the Annual Return/Report 
of Employee Benefit Plan

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Internal Revenue Service (IRS), as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on information collections, as required by the Paperwork Reduction Act 
of 1995. The IRS is soliciting comments concerning the Annual Return/
Report of Employee Benefit Plan.

DATES: Written comments should be received on or before November 2, 
2020 to be assured of consideration.

ADDRESSES: Direct all written comments to Kinna Brewington, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the forms and instructions should be directed to Martha R. 
Brinson, at (202) 317-5753, or at Internal Revenue Service, Room 6526, 
1111 Constitution Avenue NW, Washington, DC 20224, or through the 
internet at [email protected].

SUPPLEMENTARY INFORMATION: 
    Title: Annual Return/Report of Employee Benefit Plan.
    OMB Number: 1545-1610.
    Form Number: 5500 and Schedules.
    Abstract: The Annual Return/Report of Employee Benefit Plan is an 
annual information return filed by employee benefit plans. The IRS uses 
this information for a variety of matters, including ascertainment 
whether a qualified retirement plan appears to conform to requirements 
under the Internal Revenue Code or whether the plan should be audited 
for compliance. Form 5500-EZ (OMB Number: 1545-0956) is an annual 
return filed by a one participant (owners/partners and their spouses) 
retirement plan or a foreign plan to satisfy certain annual reporting 
and filing requirements imposed by the Internal Revenue Code (Code). 
The IRS uses this data to determine if the plan appears to be operating 
properly as required under the Code or whether the plan should be 
audited.
    Current Actions:

[[Page 55078]]



                 IRS Proposed Changes to the 2021 Form 5500s and Instructions Per SECURE Act 201
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          Proposed changes           Apply to form/schedule         Authority            Reasons for changes
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Adding a new checkbox to Form 5500,  Form 5500, Part I.....  SECURE Act 201........   Section 201 of the
 5500-SF, and Form 5500-EZ for an    5500-SF, Part I.......  IRC 6058(a)...........   Setting Every Community Up
 initial plan retroactively adopted  5500-EZ, Part I.......  401(b)................   for Retirement Enhancement
 as permitted by SECURE Act section                                                   Act of 2019 (SECURE Act),
 201.                                                                                 Public Law 116-94, amends
                                                                                      IRC section 401(b) to
                                                                                      allow an employer who
                                                                                      adopts a retirement plan
                                                                                      after the close of a
                                                                                      taxable year but before
                                                                                      the due date of filing its
                                                                                      return for the taxable
                                                                                      year (including
                                                                                      extensions) to treat the
                                                                                      plan as having been
                                                                                      adopted as of the last day
                                                                                      of the taxable year.
                                                                                      IRC Section
                                                                                      6058(a) requires every
                                                                                      employer who maintains a
                                                                                      retirement plan to file an
                                                                                      annual return stating such
                                                                                      information with respect
                                                                                      to the qualification,
                                                                                      financial condition, and
                                                                                      operation of the plan as
                                                                                      provided by the Secretary.
                                                                                      To implement the
                                                                                      changes made by the SECURE
                                                                                      Act, IRS proposes adding a
                                                                                      new checkbox to Form 5500s
                                                                                      for a plan sponsor if the
                                                                                      annual return is being
                                                                                      filed for an initial plan
                                                                                      retroactively adopted
                                                                                      pursuant to SECURE Act
                                                                                      section 201. However, IRS
                                                                                      requires an initial annual
                                                                                      return only for a plan
                                                                                      that has participants and
                                                                                      plan assets as of the end
                                                                                      of the initial plan year.
If this is a retroactively adopted
 plan permitted by SECURE Act
 section 201, check here [ballot]
Revise Form 5500-EZ Part IB,         Form 5500-EZ, Part I..  IRC 6081 7508A........   A plan can get an
 Checkbox for an extension of time.                                                   extension of time to file
                                                                                      a Form 5500 using the Form
                                                                                      5558, Application for
                                                                                      Extension of Time To File
                                                                                      Certain Employee Plan
                                                                                      Returns, or using the
                                                                                      employer's extension of
                                                                                      time to file its federal
                                                                                      income tax return if
                                                                                      certain conditions are
                                                                                      met; or using a special
                                                                                      extension as the IRS may
                                                                                      announce under certain
                                                                                      circumstances, such as an
                                                                                      extension for
                                                                                      Presidentially declared
                                                                                      disasters authorized in
                                                                                      IRC 7508A.
                                                                                      Accordingly, there
                                                                                      are three checkboxes for
                                                                                      extension of time on Form
                                                                                      5500 and Form 5500-SF.
                                                                                      There is only one
                                                                                      extension of time checkbox
                                                                                      on the current Form 5500-
                                                                                      EZ.
                                                                                      Our proposal can
                                                                                      mirror Part I of the Form
                                                                                      5500 and Form 5500-SF
                                                                                      because Form 5500-EZ
                                                                                      filers can no longer use
                                                                                      Form 5500-SF beginning in
                                                                                      the 2020 plan year.
                                                                                      The proposed
                                                                                      change will streamline the
                                                                                      plan sponsors' ability to
                                                                                      identify the correct
                                                                                      extension for which they
                                                                                      are applying, and be
                                                                                      consistent with Form 5500
                                                                                      and Form 5500-SF.
B. Check box if filing under
[ballot] Form 5558 [ballot]
 automatic extension
[ballot] special extension (enter
 description)
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    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for profit organizations, 
individuals and households, not-for profit institutions, and farms.
    Estimated Number of Respondents: 923,800.
    Estimated Time Per Respondent: 1 hr., 34 mins.
    Estimated Total Annual Burden Hours: 1,451,543.
    The following paragraph applies to all of the collections of 
information covered by this notice:
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid OMB control number. Books or records 
relating to a collection of information must be retained as long as 
their contents may become material in the administration of any 
internal revenue law. Generally, tax returns and tax return information 
are confidential, as required by 26 U.S.C. 6103.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. 
Comments will be of public record. Comments are invited on: (a) Whether 
the collection of information is necessary for the proper performance 
of the functions of the agency, including whether the information has 
practical utility; (b) the accuracy of the agency's estimate of the 
burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; (d) 
ways to minimize the burden of the collection of information on or 
other forms of information technology; and (e) estimates of capital or 
start-up costs and costs of operation, maintenance, and purchase of 
services to provide information.

    Approved: August 27, 2020.
Martha R. Brinson,
Tax Analyst.
[FR Doc. 2020-19449 Filed 9-2-20; 8:45 am]
BILLING CODE 4830-01-P