What This Notice Means

CP403 is the IRS's first delinquency notice for a Form 5500 series return, the annual return/report for an employee benefit plan. IRS records show the plan is still active, but no return has posted for the plan year shown. This is a reminder to file. A response is required.

The notice goes to the plan sponsor. If you don't respond, the IRS sends a final notice, CP406.

What to Do

Check the employer identification number, plan number, and plan year on the notice. Then respond within 30 days using the section that fits:

  • Section I: You already filed. Complete it if you filed for that plan year. That includes a return filed under a different sponsor name, EIN, or plan name. Verify the EIN, plan number, and period match what you filed, and note any differences.
  • Section II: No return is required. Complete it if the plan didn't have to file for that year or plan number, including because a final return was filed for an earlier year.
  • A return is required. File the late return. Form 5500 and Form 5500-SF are filed electronically through EFAST2. If you mail the IRS a paper copy of an unprocessed Form 5500, it will be sent back with instructions to file electronically.
  • Section III: Reasonable cause. If you are filing late and have reasonable cause, complete Section III. When the IRS accepts the statement, it blocks the IRS late filing penalty from being assessed.

Penalties Can Follow

Processing a late return can generate a penalty notice. Be ready to show the return was filed on time or to give a reasonable cause statement asking that the penalty not be assessed. Late filing penalties on these returns add up quickly.

Before you file, ask whether the plan qualifies for a Department of Labor or IRS late filer relief program. Those programs have their own rules and steps, so check before you file.

Keep a Record

Keep a copy of the notice, your response, and the filing acknowledgment for the return. Send responses to the address or fax number on the notice.

If you received a CP403 notice and need help with a late Form 5500, call us at (813) 229-7100.