EFAST - The ERISA Filing Acceptance System
DOL Release: revised May 2000
Q. What is EFAST?
A. EFAST is a computerized processing system that is designed to simplify and expedite the receipt and processing of the Form 5500 and Form 5500-EZ by relying on computer scannable forms and electronic filing technologies. The Form 5500 and Form 5500-EZ are filed each year by more than one million pension, welfare and fringe benefit plans to satisfy annual reporting requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code.
Q. Why was EFAST developed?
A. The Department of Labor, the Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) created the new EFAST system in conjunction with the development of computer scannable versions of the Form 5500 and Form 5500-EZ in order to streamline the forms and the methods by which they are filed and processed.
Q. What are the major changes to the Form 5500?
A. A summary of the changes to the Form 5500 is contained in the Pension and Welfare Benefits Administration's (PWBA's) In Brief: 1999 Form 5500, which is available on the EFAST web page at www.efast.dol.gov and includes two charts that will help filers understand the changes in the new form.
For information on the 1999 version of the Form 5500-EZ and instructions, also see the EFAST website.
Q. What are the computer scannable forms?
A. The 1999 Form 5500 and Form 5500-EZ are available in two computer scannable formats: "machine print" and "hand print" (the questions are the same; only the appearance is different).
Under the machine print format, filers use computer software to complete the forms which can be printed out on computer printers. Check the EFAST website at http://www.efast.dol.gov/ in late March 2000 for updates regarding the availability of machine print software. The hand print format is printed on special paper with special green ink and must be completed by hand or typewriter.
The IRS will start its annual mailing of
the hand print (green ink) packages for the 1999 Form 5500 and
Form 5500-EZ in late February. The hand print (green ink) format
and instructions will also be available 24 hours a day, 7 days a
week by calling: 1-800-TAX-FORM (1-800-829-3676).
Informational copies of the hand print forms and the machine
print forms are available at http://www.efast.dol.gov/. These copies are for viewing purposes only and are
NOT acceptable for filing.
Q. Will filing some or all of the 1999 Form 5500 Series reports using a "non- standard" form cause my filing to be rejected?
A. We believe the introduction of the new EFAST computerized form processing system and the new computer scannable formats for the Form 5500 Series reports put us on the threshold of major improvements in the annual reporting process for everyone. We understand, however, that some filers will need help making the transition to the new forms and the new EFAST filing requirements.
We want to encourage filers who can use the official green drop-out ink "hand-print" forms to do so because use of "non-standard" hand-print forms will reduce the speed and accuracy of the new EFAST system. We are making the official forms widely available -- a 1999 Form 5500 series package, including a set of the official hand print forms, is being mailed to last year's filers and the official hand print forms are available from the IRS by calling 1-800-TAX-FORMS. Also, commercial vendors will soon be releasing EFAST approved computer software that filers can use to prepare and file "machine print" versions of the 1999 Form 5500 Series reports.
Nonetheless, to help filers make the transition to the new EFAST system, PWBA will not reject during the first processing year of the new EFAST system any 1999 annual return/report filing solely because it was submitted in whole or in part on an unofficial computer generated version of the "hand-print" form. To ensure the integrity of public disclosure for participants, beneficiaries and others who examine and study the annual returns/reports, nonstandard hand-print forms must still meet certain minimum standards. The content must be identical and the overall appearance must be equivalent in readability to the official hand print forms. For example, nonstandard forms must meet the following criteria:
You can check the EFAST website for a list of approved software developers.
Q. Where do I obtain a copy of the software for the forms?
A. Commercial software developers will market approved filing software. Software developers that chose to participate were given the necessary specifications by PWBA to develop their own products and market "approved" software. It is anticipated that software developers will be offering for sale approved software that includes specifications for filing electronically. PWBA continues to receive calls from potential software developers and is providing software specifications to those who request it.
You can check the EFAST website for a list of approved software developers.
Q. Why use Form 5500/5500-EZ software for filing?
A. Filers using the software will assist the government by reducing paper to be processed and eliminating the need for data entry. This reduces data entry errors and should result in a savings of staff hours and money.
The software will also assist the filer. Most software should provide many error-checking functions that can prevent filers from making common mistakes. This may prevent a filing from being rejected.
Q. How do I file the machine print forms?
A. There are two options for filing:
1. Using the approved computer software, you can submit your Form 5500 or 5500-EZ by modem transfer if you are an approved EFAST transmitter or you can use an approved EFAST transmitter. You can also mail a computer diskette, CD-ROM or magnetic tape.
2. Or you can use approved computer software to print out the form and file it by mail.
Q. How is the hand print format different from the machine print format?
A. The EFAST system uses optical character recognition technology to scan the hand or typewritten data entries on the specially designed green drop-out ink forms that enable the computer to "read" the hand or typewritten entries.
Once printed out with approved software, the machine print form will include a 2D bar code that will appear on every page of the filing. Its purpose is to encrypt the data on that page and allow for easy capture of the information submitted on the Form 5500 and Form 5500-EZ.
Also, while the machine print form can be filed by mail or electronically, the hand print form can be filed only by mail.
Q. What do I need to do to become an EFAST electronic filer, an EFAST transmitter (authorized transmitters of forms via modems), or an EFAST software developer?
A. If you plan to file electronically, the individual who signs the Form 5500 or Form 5500-EZ needs an EFAST electronic signature to file electronically via modem, magnetic tape, floppy diskette, or CD-ROM. That individual must apply for an EFAST electronic signature by submitting a completed Form EFAST-1 signed by that individual.
Also, a company, trade, business, or other person applying to be an EFAST transmitter or software developer must submit a completed Form EFAST-1 signed by an authorized representative. An EFAST Transmitter is any company, trade, business, or other person that sends Forms 5500 and/or Forms 5500- EZ for filing via modem, magnetic tape, floppy diskette, or CD-ROM in compliance with EFAST electronic filing procedures. An EFAST Software Developer is a company, trade, business, or other person that creates, programs, or otherwise modifies computer software to be used to complete Forms 5500 and/or Forms 5500-EZ in compliance with EFAST specifications.
The Department of Labor has obtained approval of the EFAST-1 and its instructions from the Office of Management and Budget (OMB). A copy of the EFAST-1 can be viewed and downloaded on this website. Downloaded copies can be completed by using a computer or by hand and mailed to PWBA at the following address:
You may also send it by private delivery service to:
PWBA
Attn:EFAST-1
3833 Greenway Drive
Lawrence, KS 66046-1290
Q. Where do I file the 1999 Form 5500 and Form 5500-EZ?
A. If you are filing by mail, send the hand print form, machine print form, diskette, CD-ROM or magnetic tape to the following addresses:
Form 5500
PWBA
PO Box 7043
Lawrence KS 66044-7043
Form 5500-EZ
PWBA
PO Box 7042
Lawrence, KS 66044-7043
The Form 5500 instructions include directions and an address for filers using designated private delivery services. If you are filing the machine print form via modem transfer, follow the instructions in the EFAST approved computer software, using an EFAST approved transmitter.
Q. Can filers request an extension of time to file their Form 5500/Form 5500-EZ?
A. Filers may do so by filing Form 5558 with the IRS. Approved copies of the Form 5558 will not be returned to the filer. However, a copy of the extension request that was filed must be attached to your filing. On March 22, 2000 the Department granted a one-time automatic 2 ½ month extension for certain 1999 filers. This automatic extension cannot be extended. [See News Release 03/22/00.]
Q. Is there a number where I can request information about the status of my filing?
A.Starting soon, you will be able to dial a toll-free number where you can provide your 9-digit Employer Identification Number (EIN) and 3-digit Plan Number (PN), and a voice response system will advise you if your machine print or hand print filing has been received.
Q. Will EFAST perform edit checks on the Form 5500 or Form 5500-EZ?
A. Yes. All Form 5500 and Form 5500-EZ filings are subject to preliminary computerized edit checks that check for things such as completeness, accuracy, timeliness, internal consistency, missing schedules or attachments, and failure to answer mandatory questions.
Q. What happens when a filing fails one or more edit checks?
A. When errors are identified, a filer may receive a deficiency letter from EFAST regarding the error and requesting that corrections be made. In prior years, the IRS performed these tests and would send out these deficiency letters. A filer's refusal to resolve filing errors can still result in the rejection of their filing and exposure to assessment of civil and other penalties.
Q. Should I include any payments I owe with my filing?
A. Do not submit any payment with the Form 5500 or Form 5500-EZ. Payments due should be made directly to the appropriate government agency, in accordance with any applicable rules or procedures.
Q. Is there telephone assistance available for Form 5500 and Form 5500-EZ filers?
A. PWBA is in the process of establishing a help desk and expects to make available a telephone number in the near future for individuals who either need assistance in responding to correspondence from the EFAST system or who have general questions about EFAST. In the interim, these inquiries should be directed to 202-219-8770.
The IRS has also established a toll-free number to call for help in completing the Form 5500 (or Form 5500-EZ): 1-877-829-5500. This line has been established to assist filers with certain questions pertaining to retirement plans (e.g., pension and profit-sharing plans (including 401(k) plans)), including questions on Schedules B, E, F, H, I, P, R, SSA, and T. This toll-free telephone service is available Monday through Friday from 8:00 a.m. to 9:30 p.m. EST.
[Reprinted from govt. documents, and no copyright is claimed for the above material- JTC ]
| Home | Feedback | More Sites |
cpaSPAN ©2005 J.Cheek