IRS issues the 2009 Form 8955-SSA and extends filing due date

The IRS has issued the 2009 Form 8955-SSA and extended the due date for the 2009 and 2010 Form 8955-SSA to the later of January 17, 2012 or the due date that generally applies for filing the 2010 Form 8955-SSA.  The 2010 Form 8955-SSA has not been issued. The January 17, 2012 due date may not be extended by filing a Form 5558.

The Form 8955-SSA is used to report information about separated participants with deferred vested benefits.  The IRC imposes a penalty for failure to file of $1 for each participant not reported  multiplied by the number of days the failure continues to a maximum penalty of $5,000.

It is important to keep in mind that the plan administrator must provide an individual statement to each affected participant. A penalty of $50 is imposed on the person required to furnish the statement to each affected participant for each willful failure to furnish the statement or a willful furnishing of a false statement.