Erroneous Form 8955-SSA penalty notices sent by IRS

Retirement plan sponsors who timely filed 2022 Forms 8955-SSA may have received an incorrect penalty notice from the IRS due to a programming error. (IRS Employee Plan News (September 1, 2023)) The CP 283-C penalty notices indicate a late or incomplete filing of Form 8955-SSA.  

Plan sponsors that timely filed their return do not need to respond to penalty notices dated prior to September 1, 2023. The IRS has resolved the programming issue and is updating its records to reflect the timely and complete filings. Plan sponsors may contact the IRS at: (877) 829-5500.  

Form 8955-SSA is used to report information relating to each participant who separated from service covered by the plan and is entitled to a deferred vested benefit under the plan but is not paid this retirement benefit.  

As a reminder, the form must be filed with the IRS, not through the Department of Labor’s EFAST2 System. If a Form 8955-SSA is filed in EFAST2, it will not be treated as timely filed by the IRS.