Instructions for Form 5330 (Rev. December 2013) Section references are to the Internal Revenue Code unless otherwise noted. Department of the Treasury Internal Revenue Service Return of Excise Taxes Related to Employee Benefit Plans 1. A plan entity manager of a tax-exempt entity who approves, or otherwise causes the entity to be party to, a prohibited tax shelter transaction during the tax year and knows or has reason to know the transaction is a prohibited tax shelter transaction under section 4965(a)(2). 2. An employer liable for the tax under section 4971 for failure to meet the minimum funding standards under section 412. 3. An employer liable for the tax under section 4971(f) for a failure to meet the liquidity requirement of section 430(j) (or section 412(m)(5) as it existed prior to amendment by the Pension Protection Act of 2006 (PPA '06)), for plans with delayed effective dates under PPA '06. 4. An employer with respect to a multiemployer plan liable for the tax under section 4971(g)(2) for failure to comply with a funding improvement or rehabilitation plan under section 432. 5. An employer with respect to a multiemployer plan liable for the tax under section 4971(g)(3) for failure to meet the requirements for plans in endangered or critical status under section 432. 6. A multiemployer plan sponsor liable for the tax under section 4971(g)(4) for failure to adopt a rehabilitation plan within the time required under section 432. 7. An employer liable for the tax under section 4972 for nondeductible contributions to qualified plans. 8. An individual liable for the tax under section 4973(a)(3) because an excess contribution to a section 403(b)(7)(A) custodial account was made for them and that excess has not been eliminated, as specified in sections 4973(c)(2)(A) and (B). 9. A disqualified person liable for the tax under section 4975 for participating in a prohibited transaction (other than a fiduciary acting only as such), or an individual or his or her beneficiary who engages in a prohibited transaction with respect to his or her individual retirement account, unless section 408(e)(2)(A) or section 408(e)(4) applies, for each tax year or part of a tax Cat. No. 11871X Future developments. For the latest information about developments related to Form 5330 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form5330. General Instructions File Form 5330 to report the tax on: A prohibited tax shelter transaction (section 4965(a)(2)); A minimum funding deficiency (section 4971(a) and (b)); A failure to pay liquidity shortfall (section 4971(f)); A failure to comply with a funding improvement or rehabilitation plan (section 4971(g)(2)); A failure to meet requirements for plans in endangered or critical status (section 4971(g)(3)); A failure to adopt rehabilitation plan (section 4971(g)(4)); Nondeductible contributions to qualified plans (section 4972); Excess contributions to a section 403(b)(7)(A) custodial account (section 4973(a)(3)); A prohibited transaction (section 4975); A disqualified benefit provided by funded welfare plans (section 4976); Excess fringe benefits (section 4977); Certain employee stock ownership plan (ESOP) dispositions (section 4978); Excess contributions to plans with cash or deferred arrangements (section 4979); Certain prohibited allocations of qualified securities by an ESOP (section 4979A); Reversions of qualified plan assets to employers (section 4980); A failure of an applicable plan reducing future benefit accruals to satisfy notice requirements (section 4980F). A Form 5330 must be filed by any of the following. Purpose of Form year in the taxable period applicable to such prohibited transaction. 10. An employer liable for the tax under section 4976 for maintaining a funded welfare benefit plan that provides a disqualified benefit during any tax year. 11. An employer who pays excess fringe benefits and has elected to be taxed under section 4977 on such payments. 12. An employer or worker-owned cooperative, as defined in section 1042(c)(2), that maintains an employee stock ownership plan (ESOP) that disposes of the qualified securities, as defined in section 1042(c)(1), within the specified 3-year period (see section 4978). 13. An employer liable for the tax under section 4979 on excess contributions to plans with a cash or deferred arrangement, etc. 14. An employer or worker-owned cooperative that made the written statement described in section 664(g)(1)(E) or 1042(b)(3)(B) and made an allocation prohibited under section 409(n) of qualified securities of an ESOP taxable under section 4979A; or an employer or worker-owned cooperative who made an allocation of S corporation stock of an ESOP prohibited under section 409(p) taxable under section 4979A. 15. An employer who receives an employer reversion from a deferred compensation plan taxable under section 4980. 16. An employer or multiemployer plan liable for the tax under section 4980F for failure to give notice of a significant reduction in the rate of future benefit accrual. A Form 5330 and tax payment is required for any of the following. Each year any of the following under Who Must File, earlier, apply: (1), (2), (3), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), or (16). Each failure of an employer to make the required contribution to a multiemployer plan, as required by a funding improvement or rehabilitation plan under section 432. Who Must File Jan 02, 2014 A reversion of plan assets from a qualified plan taxable under section 4980. Each year or part of a year in the taxable period in which a prohibited transaction occurs under section 4975. See the instructions for Schedule C, line 2, columns (d) and (e), for a definition of "taxable period." File one Form 5330 to report all excise taxes with the same filing due date. However, if the taxes are from separate plans, file separate forms for each plan. Generally, filing Form 5330 starts the statute of limitations running only with respect to the particular excise tax(es) reported on that Form 5330. However, statutes of limitations with respect to the prohibited transaction excise tax(es) are based on the filing of the applicable Form 5500, Annual Return/Report of Employee Benefit Plan. Use Table 1 to determine the due date of Form 5330. Extension. File Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, to request an extension of time to file. If approved,