Definition and Purpose of IRS Form 8879-SO
IRS Form 8879-SO, known as the IRS e-file Signature Authorization for Form 5500, serves a critical role in the electronic filing process for employee benefit plans. This form is specifically designed for plan administrators or sponsors to authorize an electronic return originator (ERO) to submit their Form 5500 returns electronically. The form ensures that the electronic submission is valid and compliant with IRS requirements, offering a streamlined digital alternative to traditional paper filing methods.
How to Use IRS Form 8879-SO
To effectively use IRS Form 8879-SO, follow these steps:
- Complete the Form: Begin by entering the necessary data, including the details of the plan administrator, the specific plan covered by the Form 5500, and the relevant year of filing.
- Sign and Date: The plan administrator or an authorized representative must sign and date the form to acknowledge authorization of the ERO for electronic filing.
- Provide to ERO: Once signed, the form should be provided to the ERO who manages the e-filing process for Form 5500.
- Retain a Copy: Keep a signed copy of Form 8879-SO for at least three years to comply with IRS retention requirements.
Obtaining IRS Form 8879-SO
You can obtain IRS Form 8879-SO from several sources:
- IRS Website: Download the form directly from the IRS website, which hosts the latest version and instructions.
- Tax Software: Many tax software solutions that support Form 5500 filing provide built-in access to Form 8879-SO.
- Tax Professionals: Authorized EROs or tax professionals often provide clients with the form as part of their electronic filing services.
Steps to Complete IRS Form 8879-SO
Completing IRS Form 8879-SO involves several key steps to ensure accuracy:
- Enter Plan Information: Include the name of the plan, the plan sponsor's details, and plan number.
- Provide EIN: Enter the employer identification number (EIN) of the plan sponsor.
- IRAs and Contributions: Specify if the filing relates to certain types of IRAs or contribution plans.
- Signature: The responsible individual must review the information and sign the form, confirming authorization for e-filing.
Who Typically Uses IRS Form 8879-SO
IRS Form 8879-SO is primarily used by:
- Plan Administrators: Those responsible for overseeing employee benefit plans must sign the form to authorize electronic filing.
- EROs: Electronic Return Originators use this form to ensure they have appropriate authorization to file Form 5500 electronically.
- Business Owners: Companies with employee pension or welfare benefit plans also utilize the form to comply with e-filing requirements.
Important Terms Related to IRS Form 8879-SO
Understanding the terminology associated with IRS Form 8879-SO can be crucial for compliance:
- Electronic Return Originator (ERO): An authorized entity that submits tax forms electronically on behalf of others.
- Form 5500: An annual report required for employee benefit plans to provide financial and operational information to the IRS.
- Plan Administrator: The person or entity responsible for managing the financial operations of employee benefit plans.
Legal Use and Compliance for IRS Form 8879-SO
Legal compliance is essential when using IRS Form 8879-SO:
- Authorization Requirement: The form must be signed by an authorized individual to legally permit the ERO to submit the electronic filing.
- Retention Rules: Keep a copy of the signed form for at least three years as proof of authorization and compliance.
- IRS Guidelines: Adhere to IRS guidelines and deadlines to avoid penalties associated with improper filings or unauthorized submissions.
Key Elements of IRS Form 8879-SO
The critical components of IRS Form 8879-SO include:
- Signature Section: The most crucial part where the plan administrator authorizes the ERO for electronic filing.
- Plan Information: Details about the plan and sponsor, crucial for correct identification and filing.
- Certification: Declaration by the signatory confirming all information is accurate and that the ERO is authorized to file electronically.
Filing Deadlines and Important Dates
Understanding the deadlines for IRS Form 8879-SO is vital:
- Annual Deadline: Typically aligns with the deadline for Form 5500, which is due on the last day of the seventh month after the plan year ends.
- Extensions: An extension can be obtained by filing Form 5558 before the original deadline.
- Timely Filing: Ensure submission is within the deadlines to avoid penalties associated with late filings.
This comprehensive guide provides detailed information on IRS Form 8879-SO, its uses, and compliance information to streamline your electronic filing process effectively.
