Form 5500-EZ penalty calculator: daily penalty vs IRS relief program
A calculator-style guide that shows why late Form 5500-EZ cases need the official IRS relief path instead of a routine on-time packet.
Summary
For returns due after December 31, 2019, the IRS Form 5500-EZ late-filing penalty reference is $250 per day, capped at $150,000 per plan year. The IRS Late Filer Penalty Relief Program can reduce eligible delinquent EZ returns to $500 per return, capped at $1,500 per submission for the same plan.
$250/day up to $150,000 is the penalty exposure; $500-$1,500 is the official relief fee framework for eligible cases.
| Daily penalty | $250 per dayIRS late-filing penalty reference for applicable Form 5500-EZ returns. |
|---|---|
| Penalty cap | $150,000 per plan yearMaximum reference penalty in IRS guidance. |
| Relief fee | $500-$1,500IRS program fee framework for eligible submissions. |
Simple exposure example
A required calendar-year Form 5500-EZ due July 31, 2026 is filed 40 days late. The daily penalty reference is 40 × $250 = $10,000 before considering caps, official relief eligibility, notices, or IRS processing facts.
Why relief eligibility matters
The official IRS relief program can be far smaller than raw daily penalty exposure, but it has its own eligibility and process rules. That is why a late case should be handled as a late-relief review, not as a normal on-time packet.
What to collect before deciding next steps
Collect the plan year, original deadline, any Form 5558 extension, prior filed returns, IRS notices, final-year facts, year-end statements, and evidence of when the filing issue was discovered. Do not draft a reasonable-cause or notice response inside a routine packet tool.
Where Solo 5500 Desk stops
Solo 5500 Desk can help prevent late cases by preparing original on-time packets. It does not calculate official penalties, request relief, submit Form 14704, answer notices, or represent the sponsor.
Common questions
Is this a substitute for an IRS penalty calculation?
No. This page explains the official penalty references and relief fee framework. Actual IRS correspondence, notices, eligibility, and disputed penalties need official review or a qualified professional.
What is the first thing to check after a missed deadline?
Check whether the return was actually required, whether a timely Form 5558 extension exists, whether any IRS notice has arrived, and whether the case may still fit the official late-filer relief program.
Can Solo 5500 Desk prepare the late filing?
No. The current paid product is limited to simple original on-time packets. Late filing and relief content is informational and routes users to official review.
Read the IRS relief guide
Use the late-filer guide for the official program path. Use Solo 5500 Desk only for original on-time packets.
Open checkerRelated guides
IRS Form 5500-EZ Late Filer Penalty Relief Program
A source-linked guide to the official IRS late-filer penalty relief path for delinquent Form 5500-EZ returns.
Late Form 5500-EZ filing: penalty relief hard stop
A source-linked hard-stop guide for Solo 401(k) sponsors who missed the Form 5500-EZ deadline and are looking for penalty relief.
Form 5500-EZ penalties and why the deadline matters
A practical explanation of the penalty risk for missing a required Form 5500-EZ filing.
Official sources for this guide
Last reviewed: .