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Whether a participant, alternate

Generally, section 204(h) notice

penalties and interest. Routine uses of

payee, or an employer (as described in

must be provided at least 45 days

this information include giving it to the

the above paragraph) is an applicable

before the effective date of the section

Department of Justice for civil and

individual is determined on a typical

204(h) amendment. For exceptions to

criminal litigation, and cities, states, and

business day that is reasonably

this rule, see Regulations section

the District of Columbia for use in

approximate to the time the section

54.4980F-1, Q&A 9.

administering their tax laws. We may

204(h) notice is provided (or on the

also disclose this information to federal

If the person subject to liability for

latest date for providing section 204(h)

and state or local agencies to enforce

the excise tax exercised reasonable

notice, if earlier), based on all relevant

federal nontax criminal laws and to

diligence to meet the notice

facts and circumstances. For more

combat terrorism.

requirement, the total excise tax

information in determining whether an

imposed during a tax year of the

You are not required to provide the

individual is a participant or alternate

employer will not exceed $500,000.

information requested on a form that is

payee, see Regulations section

Furthermore, in the case of a failure

subject to the Paperwork Reduction Act

54.4980F-1, Q&A 10.

due to reasonable cause and not to

unless the form displays a valid OMB

The “noncompliance period” is the

willful neglect, the Secretary of the

control number. Books or records

period beginning on the date the failure

Treasury is authorized to waive the

relating to a form or its instructions

first occurs and ending on the date the

excise tax to the extent that the

must be retained as long as their

notice of failure is provided or the

payment of the tax would be excessive

contents may become material in the

failure is corrected.

relative to the failure involved. See Rev.

administration of any Internal Revenue

Proc. 2009-4, 2009-1 I.R.B. 118,

Exceptions. The section 4980F

law. Generally, tax returns and return

excise tax will not be imposed for a

available at

information are confidential, as required

2009-01_IRB/ar09.html, for procedures

failure during any period in which the

by section 6103.

to follow in applying for a waiver of part

following occurs.

or all of the excise tax due to

The time needed to complete and

1. Any person subject to liability for

reasonable cause.

file this form will vary depending on

the tax did not know that the failure

individual circumstances. The

existed and exercised reasonable

Line 4. A failure occurs on any day

estimated average time is:

diligence to meet the notice

that any applicable individual is not

requirement. A person is considered to

provided section 204(h) notice.

Recordkeeping . . .

30 hr., 22 min.

have exercised reasonable diligence

Example. There are 1,000

Learning about the

but did not know the failure existed only

applicable individuals (AI). The plan

if:

law or the form . . .

15 hr., 45 min.

administrator fails to give section 204(h)

a. The responsible person exercised

notice to 100 AIs for 60 days, and to 50

Preparing and

reasonable diligence in attempting to

of those AIs for an additional 30 days.

sending the form

deliver section 204(h) notice to

In this case there are 7,500 failures

to the IRS . . . . . . .

18 hr., 08 min.

applicable individuals by the latest date

((100 AI x 60 days) + (50 AI x 30 days)

permitted; or

= 7,500).

If you have comments concerning

b. At the latest date permitted for

the accuracy of these time estimates or

delivery of section 204(h) notice, the

Privacy Act and Paperwork

suggestions for making this form

person reasonably believed that section

Reduction Act Notice. We ask for

simpler, we would be happy to hear

204(h) notice was actually delivered to

the information on this form to carry out

from you. You can write to the Internal

each applicable individual by that date.

the Internal Revenue laws of the United

Revenue Service, Tax Products

2. Any person subject to liability for

States. This form is required to be filed

Coordinating Committee,

the tax exercised reasonable diligence

under sections 4965, 4971, 4972, 4973,

SE:W:CAR:MP:T:T:SP, IR-6526, 1111

to meet the notice requirement and

4975, 4976, 4977, 4978, 4979, 4979A,

Constitution Ave. NW, Washington, DC

corrects the failure within 30 days after

4980, and 4980F of the Internal

20224. Do not send this form to this

the employer (or other person

Revenue Code. Section 6109 requires

address. Instead, see Where To File on

responsible for the tax) knew, or

you to provide your identifying number.

page 3.

exercising reasonable diligence would

If you fail to provide this information in a

have known, that the failure existed.

timely manner, you may be liable for

-12-

Instructions For Form 5330 - Return Of Excise Taxes Related To Employee Benefit Plans Page 12

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