IRS Issues Erroneous Form 8955-SSA Penalty Notices

IRS Issues Erroneous Form 8955-SSA Penalty Notices

Approximately 4,000 plan sponsors have recently received notices that erroneously inform them that the IRS is assessing a penalty due to their “filing a late or incomplete” Forms 8955-SSA.

ASPPA GAC spoke with a representative of the IRS on Friday, August 16, 2013. The representative stated that there was a programming issue at the IRS that caused these plan sponsors to receive the notice in error. (He also stated that an additional 200-300 plan sponsors properly received the notice.)

According to the representative, the IRS will send a letter to the plan sponsors that received the notice in error. The letter, which should be sent out in approximately two weeks, will inform the plan sponsors to disregard the erroneous notice and that no further action is necessary on their part.

If a plan sponsor would like to address the issue directly with the IRS prior to receiving the letter, he or she may call the IRS helpline at 877-829-5500. According to the IRS representative, the erroneous penalty will be abated during the telephone call. In addition, the IRS will send the plan sponsor a written confirmation of the abatement in the mail.


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