CP283: a penalty for a late or incomplete Form 5500-EZ

What a CP283 means

A CP283 says the IRS charged a penalty because a Form 5500-EZ was filed late or incomplete. That's the annual return for a one-participant plan, typically an owner-only retirement plan. [1]source 1

The penalty is a daily amount up to a cap, set by section 6652(e) of the Code, so it can be large for a form many owners don't know they had to file. [1]source 1 [2]source 2

Before paying, we'd look at the IRS penalty relief program for late Form 5500-EZ filers; it can cost far less, but it's generally for returns the IRS hasn't penalized yet, so read its terms first.

Why people get one

• A Form 5500-EZ was filed late or was missing information. [1]source 1

First steps

1. Read the notice for the plan, plan year and amount. [1]source 1
2. If the return was incomplete, send the missing information. [1]source 1
3. If you had a good reason for filing late, send a signed statement or a signed Form 843 asking for the penalty to be removed, with any missing information, to the address on the notice. [1]source 1
4. If you pay by mail, write the EIN, plan number, plan type, plan year end and form number on the payment. [1]source 1

What not to do

• Don't let the due date pass while you decide; penalties and interest keep building. [1]source 1
• Don't forget the next year's return. The same plan likely needs one every year once its assets pass the filing threshold.
• Don't pay through a link or phone number in an unexpected email or text. Use irs.gov, typed in yourself.

Related notices

• Related CP295 A follow-up penalty notice for a Form 5500 when there's been no reply.

Questions