CP216 notices relate to employee benefit plans. They answer a Form 5558, Application for Extension of Time To File Certain Employee Plan Returns, filed for a Form 5500 series return or Form 8955-SSA. They have nothing to do with a Schedule K-1.
Which One Do You Have?
- CP216F: Extension approved. The notice shows the plan number and the new due date. File the return by that date.
- CP216H: Extension denied, not timely. The IRS couldn't approve the request because it wasn't filed on or before the return's due date. File the return immediately.
If You Got a CP216F
- File the plan return by the date on the notice.
- Keep a copy of the notice. If someone else prepares the return, give them a copy.
- Don't attach the notice to the return.
- If you already filed the return for that plan and period, you can disregard it.
If You Got a CP216H
- File as soon as possible to keep late filing penalties and interest down.
- Before you file, look at the penalty relief programs: the DOL Delinquent Filer Voluntary Compliance Program for Form 5500 filers, or the IRS penalty relief program for Form 5500-EZ late filers. You can instead attach a reasonable cause explanation to the return. If the IRS denies it, you owe all applicable penalties and the return is no longer eligible for a penalty relief program.
If the Dates Are Wrong
If the notice shows incorrect dates, write to the IRS at the address on the notice asking for reconsideration. Explain what is wrong and include a copy of the notice. File the return before the extension expires.
If You Didn't Ask for an Extension
Check with the plan administrator or the plan's representative. They may have filed the Form 5558.
Late plan returns can carry serious penalties. Calendar the due date the day the notice arrives.
If your plan received a CP216 notice and you're facing late filing penalties, call us at (813) 229-7100.