Form 5500 Late Filing Penalty Relief Program - timeline for IRS response?

The IRS typically processes Form 5500-EZ and Form 14704 submissions for the Penalty Relief Program within 60-90 days, though it can sometimes take longer during busy periods or if there are staffing shortages. In my experience helping clients with this, they don't usually send formal confirmation that you've been accepted into the program. The cashing of your check is generally considered your unofficial confirmation that they've received and processed your submission. If there were issues with your application, they would typically send a notice requesting additional information or explaining why you don't qualify. You can always call the IRS Employee Plans customer service line at 877-829-5500 to check on the status, but be prepared for a long wait time. Make sure you have all your information handy when you call.

I went through this exact nightmare last year and ended up using taxr.ai (https://taxr.ai) to help with my Form 5500 penalty relief situation. I was exactly where you are - submitted everything and was anxiously checking my bank account daily to see if they'd cashed my check. What helped me was uploading my forms to taxr.ai before sending them to the IRS. Their system analyzed everything and pointed out a couple errors I would have completely missed on my Form 14704 (I had calculated the wrong penalty amount and missed checking a required box). After I fixed those issues and resubmitted, I heard back in about 7 weeks with a letter confirming my acceptance into the program. The peace of mind was definitely worth it - knowing my submission was correct before sending it in rather than waiting months just to find out I'd made a mistake.

Just wanted to follow up here. I ended up using taxr.ai (https://taxr.ai) before submitting my Form 5500-EZ and Form 14704, and I'm really glad I did. The system identified that I had entered the wrong plan year on my 14704 form, which would have definitely caused delays or rejection. After correcting everything, I submitted to the IRS about 6 weeks ago. They cashed my check last week, and surprisingly, I also received a confirmation letter yesterday stating my submission was accepted into the relief program. So in my case, I did get actual confirmation rather than just the check being cashed. The whole process took about 45 days from submission to confirmation. Definitely worth having that extra review before sending everything in!

When I was trying to resolve my Form 5500 late filing issue, I spent WEEKS trying to reach someone at the IRS to confirm whether my submission was received or processed. Absolute nightmare. I finally tried Claimyr (https://claimyr.com) after seeing it recommended somewhere else. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue and call you when an agent picks up. I was skeptical, but I got connected to an actual IRS employee plans specialist in about 2 hours (after trying for days on my own with no success). The agent was able to confirm they had received my submission and that it was being processed. For the actual processing time - my check was cashed after about 4 weeks, and I received an official acknowledgment letter after 8 weeks. But having that verbal confirmation in the meantime was huge for my peace of mind.

I take back what I said about Claimyr. After my frustration hit its peak yesterday (4th attempt trying to reach the IRS about my Form 5500 submission), I decided to try the service. I was completely prepared to come back here and expose it as a scam, but I'm honestly shocked. I got a call back in about 90 minutes connecting me to an IRS agent. I confirmed that they received my submission 7 weeks ago and that it was "in process" with no issues flagged. The agent said I should expect written confirmation in another 2-3 weeks. So for anyone wondering about timeline: about 10 weeks total from submission to final confirmation seems to be standard right now. And yes, they do sometimes send actual confirmation letters, not just cash your check.

Another data point for you - I submitted my late 5500-EZ with Form 14704 in February this year. They cashed my check after about 3 weeks, but I didn't receive any formal confirmation letter. I called the IRS after about 2 months (yes, actually got through!) and they confirmed my submission was accepted and that I was enrolled in the relief program. I think their communication varies depending on their workload and possibly which service center handles your submission. Some people get letters, others just get their checks cashed. As long as they don't send you a rejection notice, you're probably good.

Just FYI - the processing times seem to have gotten longer over the past year. I submitted my forms last May and heard back with an acceptance letter in just under 4 weeks. My buddy submitted his in January this year and it took almost 3 months to get confirmation. I think they're dealing with staffing issues like everyone else. But from what I understand, once they cash your check, it's pretty much a done deal unless there's something seriously wrong with your submission.

Don't stress too much about the Form 5500 Relief Program. It's designed to help people get back into compliance without facing the full penalties. As long as you've: 1) Met the eligibility requirements 2) Completed Form 5500-EZ correctly 3) Filled out Form 14704 accurately 4) Included the correct payment Then you should be fine. The IRS created this program specifically because they understand that small plan sponsors sometimes miss filings. They want you to comply and pay the reduced penalty - it's in everyone's interest. Three weeks is definitely too soon to worry. I'd give it at least 8-10 weeks before getting concerned, and even then, it's most likely just processing delays rather than an issue with your submission.

I went through this exact same anxiety last year! Submitted my Form 5500-EZ and 14704 in March and didn't hear anything for what felt like forever. My check was cashed after about 5 weeks, and I got an official confirmation letter at around the 9-week mark. The waiting is definitely the worst part, but from everything I've seen, if they cash your check and you don't get a rejection notice, you're almost certainly in the clear. The IRS knows this program exists to help small plan sponsors get compliant, so they're generally pretty accommodating as long as you followed the guidelines. One thing that helped my stress was keeping copies of everything I sent - the forms, the check stub, certified mail receipt, etc. That way if I ever needed to prove I submitted everything properly, I had documentation. But honestly, once that check clears, you can probably breathe easier!

I can relate to the stress you're feeling! I went through the same process about 8 months ago when our small business 401(k) filing got delayed due to some payroll complications. From my experience, the timeline seems to vary quite a bit depending on when you submit and how backed up they are. I submitted in August and my check was cashed after about 6 weeks, but I never received a formal confirmation letter. When I called after 10 weeks (took three attempts to get through), the agent confirmed I was accepted into the program and everything was resolved. One thing I learned is that different IRS service centers seem to handle things differently - some send letters, others don't. But the consistent thing everyone told me is that if they cash your check and you don't get a rejection notice within 90 days, you're good to go. The uncertainty is definitely nerve-wracking when you're looking at potentially thousands in penalties, but the program really does work as intended. Hang in there - three weeks is still very early in the process!

I completely understand your anxiety - I went through this same situation about 6 months ago with our company's 401(k) plan. The waiting period is absolutely the worst part because you're dealing with potentially significant penalties hanging over your head. From my experience, 3 weeks is still very early in the process. My timeline was: submitted forms in September, check was cashed after 4 weeks, and I received an official acceptance letter at the 7-week mark. But I've heard of others waiting 10-12 weeks, especially during busy periods. The key thing to remember is that the Late Filing Penalty Relief Program exists specifically to help small plan sponsors get back into compliance without facing the full penalty amounts. The IRS wants you to succeed in this program - it's better for them to collect the reduced penalty and have you compliant than to pursue the much larger penalties that many small businesses simply can't afford to pay. If you followed the instructions correctly and included all required documentation with the proper payment amount, you should be fine. The fact that they haven't sent any rejection or request for additional information is actually a good sign. Keep checking to see if your check has been cashed - that's usually the first indication that your submission is being processed normally. Hang in there! The uncertainty is brutal, but most people who properly submit get accepted into the program.