Employee Retirement Benefit Plan Returns Required on Magnetic Media, 53704-53709 [2013-21159]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 78, Number 169 (Friday, August 30, 2013)]
[Proposed Rules]
[Pages 53704-53709]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21159]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-111837-13]
RIN 1545-BL54


Employee Retirement Benefit Plan Returns Required on Magnetic 
Media

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document contains proposed regulations relating to the 
requirements for filing certain employee retirement benefit plan 
statements, returns, and reports on magnetic media. The term magnetic 
media includes electronic filing, as well as other magnetic media 
specifically permitted under applicable regulations, revenue 
procedures, publications, forms, instructions, or other guidance on the 
IRS.gov Internet Web site. These regulations would affect plan 
administrators and employers maintaining retirement plans that are 
subject to various employee benefit reporting requirements under the 
Internal Revenue Code (Code).

DATES: Comments and requests for a public hearing must be received by 
October 29, 2013.

ADDRESSES: Send submissions relating to the proposed regulations to: 
CC:PA:LPD:PR (REG-111837-13), room 5205, Internal Revenue Service, PO 
Box 7604, Ben Franklin Station, Washington DC, 20044. Submissions may 
be hand delivered Monday through Friday, between the hours of 8 a.m. 
and 4 p.m. to CC:PA:LPD:PR (REG-111837-13), Courier's Desk, Internal 
Revenue Service, 1111 Constitution Avenue NW., Washington, DC.
    Alternately, taxpayers may submit comments relating to the proposed 
regulations electronically via the Federal eRulemaking Portal at 
www.regulations.gov (IRS REG-111837-13).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
William Gibbs or Pamela Kinard at (202) 622-6060; concerning the 
submission of comments or to request a public hearing, Oluwafunmilayo 
Taylor at (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Electronic filing of tax returns benefits taxpayers and the IRS by 
reducing errors that are more likely to occur during the manual 
preparation and processing of

[[Page 53705]]

paper returns. Electronic filing results in faster settling of accounts 
and better customer service. Requiring that employee retirement benefit 
plan statements, returns, and reports be filed electronically improves 
the timeliness and accuracy of the information for both the public and 
the employee retirement benefit plan community.
    Section 6011(e)(1) authorizes the Secretary to prescribe 
regulations providing the standards for determining which returns must 
be filed on magnetic media or in other machine-readable form. Section 
6011(e)(2)(A) provides that the Secretary may not require any person to 
file returns on magnetic media unless the person is required to file at 
least 250 returns during the calendar year. Section 6011(e)(2)(B) 
requires that the Secretary, prior to issuing regulations requiring 
these entities to file returns on magnetic media, take into account 
(among other relevant factors) the ability of the taxpayer to comply at 
reasonable cost with the requirements of such regulations.
    A statement, return, or report filed electronically with an 
electronic return transmitter in the manner and time prescribed by the 
Commissioner is deemed to be filed on the date of the electronic 
postmark given by the return transmitter (that is, a record of the date 
and time that an authorized electronic return transmitter receives the 
transmission of a taxpayer's electronically filed document on its host 
system). Accordingly, if the electronic postmark is timely, the 
document is considered filed timely although it is received by the IRS 
after the last date prescribed for filing. See Sec.  301.7502-1(d). 
Section 414(g) defines a plan administrator as a person specifically so 
designated by the terms of the plan or, in the event no one is 
designated: (a) An employer for a single employer plan; (b) an 
association, committee, joint board of trustees, or other similar group 
of representatives for a plan maintained by two or more employers or 
jointly by one or more employers and one or more employee 
organizations; or (c) such other person as the Secretary of Treasury 
may prescribe in regulations.
    Section 6057(a) requires the plan administrator (within the meaning 
of section 414(g)) of each plan to which the vesting standards of 
section 203 of the Employee Retirement Income Security Act of 1974 
(ERISA) applies for a plan year to file, within the time prescribed by 
regulations, a registration statement with the Secretary of the 
Treasury. The registration statement must set forth the following 
information relating to the plan: (1) The name of the plan; (2) the 
name and address of the plan administrator; (3) the name and 
identifying information of plan participants who separated from service 
covered by the plan and are entitled to deferred vested retirement 
benefits; and (4) the nature, amount, and form of deferred vested 
retirement benefits to which the plan participants are entitled. The 
form used to file this registration statement is Form 8955-SSA, 
``Annual Registration Statement Identifying Separated Participants with 
Deferred Vested Benefits.'' Section 6057(b) requires that the plan 
administrator notify the Secretary of certain changes in the plan, 
including the name of the plan, the name and address of the plan 
administrator, the termination of the plan, or any merger or 
consolidation of the plan with another plan (or the plan's division 
into two or more plans).
    Section 6058(a) generally requires that every employer maintaining 
a pension, annuity, stock bonus, profit-sharing, or other funded plan 
of deferred compensation, or the plan administrator within the meaning 
of section 414(g) of the plan, file an annual return stating such 
information as the Secretary may by regulations prescribe with respect 
to the qualification, financial condition, and operations of the plan. 
The reporting requirement under section 6058(a) is satisfied by filing 
a return on the Form 5500 series. The Form 5500, ``Annual Return/Report 
of Employee Benefit Plan,'' the Form 5500-SF, ``Short Form Annual 
Return/Report of Small Employee Benefit Plan,'' and Form 5500-EZ, 
``Annual Return of One-Participant (Owners and Their Spouses) 
Retirement Plan,'' make up the Form 5500 series.
    Section 6059(a) generally requires that a plan administrator of 
each defined benefit plan to which section 412 applies file the 
actuarial report described in section 6059(b) for the first plan year 
for which section 412 applies to the plan and for each third plan year 
thereafter (or more frequently if the Secretary determines that more 
frequent reports are necessary). The schedules used to file these 
actuarial reports are the Schedule SB, ``Single-Employer Defined 
Benefit Plan Actuarial Information,'' and the Schedule MB, 
``Multiemployer Defined Benefit Plan and Certain Money Purchase Plan 
Actuarial Information,'' which are required to be filed as part of the 
Form 5500 or Form 5500-SF.
    On July 21, 2006, the Department of Labor (DOL) published a final 
rule in the Federal Register (71 FR 41359) requiring electronic filing 
of the Form 5500 and Form 5500-SF for plans covered by Title I of ERISA 
for plan years beginning on or after January 1, 2008. On November 16, 
2007, the DOL published a final rule in the Federal Register (72 FR 
64710) postponing the effective date of the electronic filing mandate 
so that the mandate applies to plan years beginning on or after January 
1, 2009. See 29 CFR Sec.  2520.104a-2. The electronic filing system 
mandated by DOL is the computerized ERISA Filing Acceptance System 
(EFAST2).
    Filers of the Form 5500 and Form 5500-SF are required to file 
electronically through EFAST2. Currently, electronic filing is not 
available for the Form 5500-EZ. However, certain filers that would 
otherwise file the Form 5500-EZ on paper may instead file the Form 
5500-SF electronically through EFAST2. Under the current requirements, 
plans that are eligible to use the Form 5500-SF to file electronically 
include plans that cover fewer than 100 participants at the beginning 
of the plan year and satisfy certain other requirements. See the 
Instructions to the Form 5500-EZ for information about filing the Form 
5500-EZ.
    In order to implement DOL's mandate for electronic filing of the 
Form 5500 and Form 5500-SF, certain items on these forms that relate 
solely to Code requirements were eliminated. Information on the forms, 
schedules, and attachments that were eliminated was used by the IRS for 
compliance purposes. By mandating electronic filing of information, the 
IRS can obtain valuable plan information that is not currently required 
to be filed through EFAST2.\1\ In coordination with DOL, the IRS 
anticipates adding items on the Form 5500 and Form 5500-SF relating 
solely to Code requirements. For those filers that are not subject to 
IRS electronic filing requirements, the IRS plans to provide a paper-
only form containing those Code-related items and an alternative method 
of filing with the IRS.
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    \1\ In its published report on September 20, 2011, the Treasury 
Inspector General for Tax Administration (TIGTA) recommended that 
the IRS explore regulatory options for mandating electronic filings 
of annual employee benefit returns for employee benefit retirement 
plans. TIGTA believed that this would assist the IRS in satisfying 
its tax administration responsibilities. See ``The Employee Plans 
Function Should Continue Its Efforts to Obtain Needed Retirement 
Plan Information,'' Reference Number 3011-10-108 (September 20, 
2011).
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Explanation of Provisions

I. In General

    These regulations provide that a plan administrator (or, in certain 
situations, an employer maintaining a plan) required by the Code or 
regulations to file at least 250 returns during the

[[Page 53706]]

calendar year that includes the first day of the plan year must use 
magnetic media to file certain statements, returns, and reports under 
sections 6057, 6058, and 6059. Magnetic media is defined as electronic 
filing or other media specifically permitted under applicable 
regulations, revenue procedures, publications, forms, instructions, or 
other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.)
    Filers of the Form 5500 and Form 5500-SF are already required to 
file the returns electronically through EFAST2. In addition, many 
filers of the Form 8955-SSA already voluntarily file electronically 
with the IRS and also are required to file the Form 5500 and Form 5500-
SF electronically through EFAST2. The IRS and the Treasury Department 
have determined that taxpayers should be able to comply at a reasonable 
cost with the requirement to file statements, returns, and reports on 
magnetic media.
    The determination of whether a filer is required to file at least 
250 returns is made by aggregating all returns, regardless of type, 
that the filer is required to file, including for example, income tax 
returns, returns required under section 6033, information returns, 
excise tax returns, and employment tax returns.

II. Registration Statements and Notifications Required Under Section 
6057(a) and (b)

    The proposed regulations under section 6057 provide that a 
registration statement under section 6057(a) or notification required 
under section 6057(b) must be filed on magnetic media if the filer is 
required by the Code or regulations to file at least 250 returns during 
the calendar year that includes the first day of the plan year. For 
purposes of the regulations under section 6057, the term filer means 
the plan administrator within the meaning of section 414(g).
    The proposed regulations under section 6057 provide that if a filer 
that is required to file electronically fails to do so, the filer is 
deemed to have failed to file the registration statement or other 
notification required under section 6057. Section 6652(d)(1) imposes a 
penalty on the plan administrator for the failure to file a 
registration statement required under section 6057(a). Section 
6652(d)(2) imposes a penalty on the plan administrator for the failure 
to file a notification required under section 6057(b). The proposed 
regulations under section 6057 provide that rules under Sec.  301.6652-
3(b) apply for purposes of determining whether there is reasonable 
cause for failure to file a registration statement required under 
section 6057(a) or notification required under section 6057(b). In 
addition, rules similar to the rules in Sec.  301.6724-1(c)(3)(ii), 
regarding undue economic hardship relating to filing on magnetic media, 
will apply.

III. Form 5500 Series

    The proposed regulations under section 6058 provide that a return 
required under section 6058 must be filed on magnetic media if the 
filer is required by the Code or regulations to file at least 250 
returns during the calendar year that includes the first day of the 
plan year. The term filer means the employer or employers maintaining 
the plan and the plan administrator within the meaning of section 
414(g). Thus, in applying the 250-return requirement, the returns of 
the employer or employers maintaining the plan and of the plan 
administrator are aggregated.
    The proposed regulations under section 6058 also provide that, in 
determining the 250-return requirement, the aggregation rules of 
section 414(b), (c), (m), and (o) apply to a filer that is, or 
includes, an employer. Thus, for example, a filer that is a member of a 
controlled group of corporations within the meaning of section 414(b) 
must file the Form 5500 series on magnetic media if the aggregate 
number of returns required to be filed by the controlled group of 
corporations is at least 250. These aggregation rules also apply to the 
regulations under sections 6057 and 6059 if the plan administrator is 
the employer.
    The proposed regulations under section 6058 provide that if the 
filer is required to file electronically but fails to do so, the filer 
is deemed to have failed to file the Form 5500 series. For a failure to 
file the Form 5500 series, a penalty under section 6652(e) applies. The 
proposed regulations under section 6058 provide that rules under Sec.  
301.6652-3(b) apply for purposes of determining whether there is 
reasonable cause for failure to file a return. In addition, rules 
similar to the rules in Sec.  301.6724-1(c)(3)(ii), regarding undue 
economic hardship relating to filing on magnetic media, will apply.

IV. Actuarial Reports

    The proposed regulations under section 6059 provide that an 
actuarial report required under section 6059 must be filed on magnetic 
media if the filer is required by the Code or regulations to file at 
least 250 returns during the calendar year that includes the first day 
of the plan year. For purposes of the regulations under section 6059, 
the term filer means the plan administrator within the meaning of 
section 414(g).
    The proposed regulations under section 6059 provide that if a filer 
that is required to file electronically fails to do so, the filer is 
deemed to have failed to file the actuarial report required under 
section 6059. Section 6692 provides that a plan administrator that 
fails to file the report required under section 6059 shall pay a 
penalty for each such failure, unless it is shown that there is 
reasonable cause for the failure. The proposed regulations under 
section 6059 provide that rules under Sec.  301.6692-1(c) apply for 
purposes of determining whether there is reasonable cause for failure 
to file an actuarial report. In addition, rules similar to the rules in 
Sec.  301.6724-1(c)(3)(ii), regarding undue economic hardship relating 
to filing on magnetic media, will apply.

V. Economic Hardship Waiver

    These proposed regulations also provide that the Commissioner may 
waive the requirement to file electronically in cases of undue economic 
hardship. Because the Treasury Department and the IRS believe that 
electronic filing will not impose significant burdens on the taxpayers 
covered by these regulations, the Commissioner anticipates granting 
waivers of the electronic filing requirement in only exceptional cases. 
Waivers are anticipated to be particularly rare for the filers of Form 
5500 and Form 5500-SF (as well as the schedules attached to those 
forms), because these filers are already required to file 
electronically under EFAST2.

Proposed Effective Date

    These regulations are proposed to apply for employee retirement 
benefit plan statements, notifications, returns, and reports required 
to be filed under sections 6057, 6058, and 6059 for plan years that 
begin on or after January 1, 2014, but only for filings with a filing 
deadline (not taking into account extensions) after December 31, 2014.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It has also 
been determined that 5 U.S.C. 533(b) of the Administrative Procedure 
Act (5 U.S.C. chapter 5) does not apply to these regulations. In 
addition, it is hereby certified that any collection of information 
contained in this regulation will not have a significant economic 
impact on a substantial number of small entities, and therefore no 
flexibility

[[Page 53707]]

analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is 
required. Pursuant to section 7805(f) of the Internal Revenue Code, 
these regulations have been submitted to the Office of Chief Counsel 
for Advocacy of the Small Business Administration for comments on its 
impact on small businesses.
    The certification is based on the fact that Sec. Sec.  301.6057-1, 
301.6058-1, and 301.6059-1 currently require filing with the IRS of 
information under sections 6057, 6058, and 6059 in accordance with 
applicable forms, schedules, and accompanying instructions. These 
proposed regulations merely require that this information be filed 
electronically by persons required to file at least 250 returns for the 
calendar year, consistent with section 6011(e)(2)(A), which provides 
that, in prescribing regulations providing standards for determining 
which returns must be filed on magnetic media or in other machine-
readable form, the Secretary shall not require any person to file 
returns on magnetic media unless the person is required to file at 
least 250 returns during the calendar year. Many small entities are 
unlikely to file 250 returns or more during the calendar year. Filers 
of the Form 5500 and Form 5500-SF are already required to file the 
returns electronically through EFAST2 pursuant to DOL regulations. In 
addition, many filers of the Form 8955-SSA already voluntarily file 
electronically with the IRS.
    Further, if a taxpayer's operations are computerized, reporting in 
accordance with the regulations should be less costly than filing on 
paper. The IRS and the Treasury Department have determined that 
taxpayers should be able to comply at a reasonable cost with the 
requirement in these regulations to file employee retirement 
statements, returns, and reports on magnetic media. In addition, the 
proposed regulations provide that the IRS may waive the electronic 
filing requirements upon a showing of hardship.

Comments and Requests for Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS as prescribed in this preamble under the ``ADDRESSES'' 
heading. The IRS and the Treasury Department request comments on all 
aspects of the rules. All comments are available at www.regulations.gov 
or upon request. A public hearing will be scheduled if requested in 
writing by any person who timely submits written comments. If a public 
hearing is scheduled, notice of the date, time, and place of the public 
hearing will be published in the Federal Register.

Drafting Information

    The principal authors of these regulations are William Gibbs and 
Pamela R. Kinard, Office of Division Counsel/Associate Chief Counsel 
(Tax Exempt and Government Entities). However, other personnel from the 
IRS and the Treasury Department participated in the development of 
these regulations.

List of Subjects in 26 CFR Part 301

    Administrative practice and procedure, Alimony, Bankruptcy, Child 
support, Continental shelf, Courts, Crime, Employment taxes, Estate 
taxes, Excise taxes, Gift taxes, Income taxes, Investigations, Law 
enforcement, Oil pollution, Penalties, Pensions, Reporting and 
recordkeeping requirements, Seals and insignia, Statistics and taxes.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

0
Paragraph 1. The authority for part 301 continues to read in part as 
follows:

    Authority: 26 U.S.C. 7508 * * *

0
Par. 2. Section 301.6057-3 is added to read as follows:


Sec.  301.6057-3  Required use of magnetic media for filing 
requirements relating to deferred vested retirement benefit.

    (a) Magnetic media filing requirements under section 6057. A 
registration statement required under section 6057(a) or a notification 
required under section 6057(b) with respect to an employee benefit plan 
must be filed on magnetic media if the filer is required by the 
Internal Revenue Code or regulations to file at least 250 returns 
during the calendar year ending with or within the plan year. Returns 
filed on magnetic media must be made in accordance with applicable 
revenue procedures, publications, forms, instructions, or other 
guidance on the IRS.gov Internet Web site. In prescribing revenue 
procedures, publications, forms, instructions, or other guidance on the 
IRS.gov Internet Web site, the Commissioner may direct the type of 
magnetic media filing. (See Sec.  601.601(d)(2)(ii)(b) of this 
chapter.)
    (b) Economic hardship waiver. The Commissioner may waive the 
requirements of this section in cases of undue economic hardship. The 
principal factor in determining hardship will be the amount, if any, by 
which the cost of filing the registration statements or notifications 
on magnetic media in accordance with this section exceeds the cost of 
filing the registration statements or notifications on paper or other 
media. A request for a waiver must be made in accordance with 
applicable published guidance, publications, forms, instructions, or 
other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.) The waiver will specify the type 
of filing (that is, a registration statement or notification under 
section 6057), and the period to which it applies, and will be subject 
to such terms and conditions regarding the method of filing as may be 
prescribed by the Commissioner.
    (c) Failure to file. If a filer required to file a registration 
statement or other notification under section 6057 fails to file the 
statement or other notification on magnetic media when required to do 
so by this section, the filer is deemed to have failed to file the 
statement or other notification. See section 6652(d) for the amount 
imposed for the failure to file a registration statement or other 
notification under section 6057. In determining whether there is 
reasonable cause for the failure to file the registration statement or 
notification under section 6057, Sec.  301.6652-3(b) and rules similar 
to the rules in Sec.  301.6724-1(c)(3)(ii) (regarding undue economic 
hardship related to filing information returns on magnetic media) will 
apply.
    (d) Meaning of terms. The following definitions apply for purposes 
of this section.
    (1) Magnetic media. The term magnetic media means electronic 
filing, as well as other media specifically permitted under applicable 
regulations, revenue procedures, or publications, forms, instructions, 
or other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.)
    (2) Registration statement required under section 6057(a). The term 
registration statement required under section 6057(a) means a Form 
8955-SSA (or its successor).
    (3) Notification required under section 6057(b). The term 
notification required under section 6057(b) means either a Form 8955-
SSA (or its successor) or a Form 5500 series (or its successor).
    (4) Determination of 250 returns--(i) In general. For purposes of 
this section, a filer is required to file at least 250 returns if, 
during the calendar year that includes the first day of the plan year, 
the filer is required to file at least 250

[[Page 53708]]

returns of any type, including information returns (for example, Forms 
W-2 and Forms 1099), income tax returns, employment tax returns, and 
excise tax returns.
    (ii) Definition of filer. For purposes of this section, the term 
filer means the plan administrator within the meaning of section 
414(g). If the plan administrator within the meaning of section 414(g) 
is the employer, the special rules in Sec.  1.6058-2(d)(3)(iii) will 
apply.
    (e) Example. The following example illustrates the provisions of 
paragraph (d)(4) of this section:

    Example. In 2014, P, the plan administrator of Plan B, is 
required to file 252 returns (including Forms 1099-R, 
``Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc.,'' Form 8955-SSA, 
``Annual Registration Statement Identifying Separated Participants 
with Deferred Vested Benefits,'' Form 5500, ``Annual Return/Report 
of Employee Benefit Plan,'' and Form 945, ``Annual Return of 
Withheld Federal Income Tax''). Plan B's plan year is the calendar 
year. Because P is required to file at least 250 returns during the 
2014 calendar year, P must file the 2014 Form 8955-SSA for Plan B 
electronically.

    (f) Effective/applicability date. This section is applicable for 
registration statements and other notifications required to be filed 
under section 6057 for plan years that begin on or after January 1, 
2014, but only for filings with a filing deadline (not taking into 
account extensions) after December 31, 2014.
0
Par. 3. Section 301.6058-2 is added to read as follows:


Sec.  301.6058-2  Required use of magnetic media for filing 
requirements relating to information required in connection with 
certain plans of deferred compensation.

    (a) Magnetic media filing requirements under section 6058. A return 
required under section 6058 with respect to an employee benefit plan 
must be filed on magnetic media if the filer is required by the 
Internal Revenue Code or regulations to file at least 250 returns 
during the calendar year ending with or within the plan year. Returns 
filed on magnetic media must be made in accordance with applicable 
revenue procedures, publications, forms, instructions, or other 
guidance on the IRS.gov Internet Web site. In prescribing revenue 
procedures, publications, forms, and instructions, or other guidance on 
the IRS.gov Internet site, the Commissioner may direct the type of 
magnetic media filing. (See Sec.  601.601(d)(2)(ii)(b) of this 
chapter.)
    (b) Economic hardship waiver. The Commissioner may waive the 
requirements of this section in cases of undue economic hardship. The 
principal factor in determining hardship will be the amount, if any, by 
which the cost of filing the return on magnetic media in accordance 
with this section exceeds the cost of filing the returns on paper or 
other media. A request for a waiver must be made in accordance with 
applicable published guidance, publications, forms, instructions, or 
other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.) The waiver will specify the type 
of filing (that is, a return required under section 6058) and the 
period to which it applies, and will be subject to such terms and 
conditions regarding the method of filing as may be prescribed by the 
Commissioner.
    (c) Failure to file. If a filer required to file a return under 
section 6058 fails to file the return on magnetic media when required 
to do so by this section, the filer is deemed to have failed to file 
the return. See section 6652(e) for the addition to tax for failure to 
file a return. In determining whether there is reasonable cause for 
failure to file the return, Sec.  301.6652-3(b) and rules similar to 
the rules in Sec.  301.6724-1(c)(3)(ii) (regarding undue economic 
hardship related to filing information returns on magnetic media) will 
apply.
    (d) Meaning of terms. The following definitions apply for purposes 
of this section.
    (1) Magnetic media. The term magnetic media means electronic 
filing, as well as other media specifically permitted under applicable 
regulations, revenue procedures, or publications, forms, instructions, 
or other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.)
    (2) Return required under section 6058. The term return required 
under section 6058 means the Form 5500 series (or its successor).
    (3) Determination of 250 returns--(i) In general. For purposes of 
this section, a filer is required to file at least 250 returns if, 
during the calendar year that includes the first day of the plan year, 
the filer is required to file at least 250 returns of any type, 
including information returns (for example, Forms W-2 and Forms 1099), 
income tax returns, employment tax returns, and excise tax returns.
    (ii) Definition of filer. For purposes of this section, the term 
filer means the employer or employers maintaining the plan and the plan 
administrator within the meaning of section 414(g).
    (iii) Special rules relating to determining 250 returns. For 
purposes of applying paragraph (d)(3)(ii) of this section, the 
aggregation rules of section 414(b), (c), (m), and (o) will apply to a 
filer that is or includes an employer. Thus, for example, a filer that 
is a member of a controlled group of corporations within the meaning of 
section 414(b) must file the Form 5500 series on magnetic media if the 
aggregate number of returns required to be filed by all members of the 
controlled group of corporations is at least 250.
    (e) Example. The following example illustrates the provisions of 
paragraph (d)(3) of this section:

    Example.  In 2014, Employer X (the plan sponsor of Plan A) and P 
(the plan administrator of Plan A) are required to file 267 returns. 
Employer X is required to file the following: one Form 1120, ``U.S. 
Corporation Income Tax Return,'' 195 Forms W-2, ``Wage and Tax 
Statement,'' 25 Forms 1099-DIV, ``Dividends and Distributions,'' one 
Form 940, ``Employer's Annual Federal Unemployment (FUTA) Tax 
Return,'' and four Forms 941, ``Employer's Quarterly Federal Tax 
Return.'' P is required to file 40 Forms 1099-R, ``Distributions 
From Pensions, Annuities, Retirement, Profit-Sharing Plans, IRAs, 
Insurance Contracts, etc.'' P and Employer X are jointly required to 
file one Form 5500 series. Plan A's plan year is the calendar year. 
Because P and Employer X, in the aggregate, are required to file at 
least 250 returns during the calendar year, the 2014 Form 5500 for 
Plan A must be filed electronically.

    (f) Effective/applicability date. This section is applicable for 
returns required to be filed under section 6058 for plan years that 
begin on or after January 1, 2014, but only for filings with a filing 
deadline (not taking into account extensions) after December 31, 2014.
0
Par. 4. Section 301.6059-2 is added to read as follows:


Sec.  301.6059-2  Required use of magnetic media for filing 
requirements relating to periodic report of actuary

    (a) Magnetic media filing requirements under section 6059. An 
actuarial report required under section 6059 with respect to an 
employee benefit plan must be filed on magnetic media if the filer is 
required by the Internal Revenue Code or regulations to file at least 
250 returns during the calendar year ending with or within the plan 
year. Actuarial reports filed on magnetic media must be made in 
accordance with applicable revenue procedures, publications, forms, 
instructions, or other guidance on the IRS.gov Internet Web site. In 
prescribing revenue procedures, publications, forms, instructions, or 
other guidance on the IRS.gov Internet Web site, the Commissioner may 
direct the type of magnetic media filing. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.)
    (b) Economic hardship waiver. The Commissioner may waive the

[[Page 53709]]

requirements of this section in cases of undue economic hardship. The 
principal factor in determining hardship will be the amount, if any, by 
which the cost of filing the reports on magnetic media in accordance 
with this section exceeds the cost of filing the reports on paper or 
other media. A request for a waiver must be made in accordance with 
applicable published guidance, publications, forms, instructions, or 
other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.) The waiver will specify the type 
of filing (that is, an actuarial report required under section 6059) 
and the period to which it applies, and will be subject to such terms 
and conditions regarding the method of filing as may be prescribed by 
the Commissioner.
    (c) Failure to File. If a filer required to file an actuarial 
report under section 6059 fails to file the report on magnetic media 
when required to do so by this section, the filer is deemed to have 
failed to file the report. See section 6692 for the penalty for the 
failure to file an actuarial report. In determining whether there is 
reasonable cause for failure to file the report, Sec.  301.6692-1(c) 
and rules similar to the rules in Sec.  301.6724-1(c)(3)(ii) (regarding 
undue economic hardship related to filing information returns on 
magnetic media) will apply.
    (d) Meaning of terms. The following definitions apply for purposes 
of this section.
    (1) Magnetic media. The term magnetic media means electronic 
filing, as well as other media specifically permitted under applicable 
regulations, revenue procedures, or publications, forms, instructions, 
or other guidance on the IRS.gov Internet Web site. (See Sec.  
601.601(d)(2)(ii)(b) of this chapter.)
    (2) Actuarial report required under section 6059--(i) Single 
employer plans. For a single employer plan, the term actuarial report 
required under section 6059 means the Schedule SB, ``Single-Employer 
Defined Benefit Plan Actuarial Information,'' of the Form 5500 series 
(or its successor).
    (ii) Multiemployer and certain money purchase plans. For 
multiemployer and certain money purchase plans, the term actuarial 
report required under section 6059 means the Schedule MB, 
``Multiemployer Defined Benefit Plan and Certain Money Purchase Plan 
Actuarial Information,'' of the Form 5500 series (or its successor).
    (3) Determination of 250 returns--(i) In general. For purposes of 
this section, a filer is required to file at least 250 returns if, 
during the calendar year that includes the first day of the plan year, 
the filer is required to file at least 250 returns of any type, 
including information returns (for example, Forms W-2 and Forms 1099), 
income tax returns, employment tax returns, and excise tax returns.
    (ii) Definition of filer. For purposes of this section, the term 
filer means the plan administrator within the meaning of section 
414(g). If the plan administrator within the meaning of section 414(g) 
is the employer, the special rules in Sec.  1.6058-2(d)(3)(iii) will 
apply.
    (e) Example. The following example illustrates the provisions of 
paragraph (d)(3) of this section:

    Example.  In 2014, P, the plan administrator of Plan B (a single 
employer defined benefit plan), is required to file 266 returns 
(including Forms 1099-R ``Distributions From Pensions, Annuities, 
Retirement, Profit-Sharing Plans, IRAs, Insurance Contracts, etc.'' 
and one Form 5500 series). Plan B's plan year is the calendar year. 
Because P is required to file at least 250 returns during the 
calendar year, P must file the 2014 Schedule SB of the Form 5500 
series for Plan B electronically.

    (f) Effective/applicability date. This section is applicable for 
actuarial reports required to be filed under section 6059 for plan 
years that begin on or after January 1, 2014, but only for filings with 
a filing deadline (not taking into account extensions) after December 
31, 2014.

Beth Tucker,
 Deputy Commissioner for Operations Support.
[FR Doc. 2013-21159 Filed 8-29-13; 8:45 am]
BILLING CODE 4830-01-P