What are the penalties for mistakes in form 5500EZ

The IRS has details about the penalties and instructions for filing the form. From their website, "The penalties have been increased to $250 a day, up to a maximum penalty of $150,000 per plan year applied to returns required to be filed after December 31, 2019." At minimum, the IRS will penalize late filing, but offer no details about the penalties for incorrect filing.

They mention in their instructions how to reduce the chances of hearing from them or incurring penalties. The first instruction says to complete the form, either by paper copy or by using the electronic form. If available, you might be able to use software to complete this form as well. The next instruction says to avoid using pens that can bleed ink or glue/sticky substances, and to avoid sending extra information. Then, they instruct you to mail the form to the IRS office in Ogden, UT.

I would recommend seeking professional assistance to fill out this form, especially if any of this seems confusing to you, or you would prefer to have professional guidance. To do this, I would find a tax professional like an Enrolled Agent (EA) or CPA. They could provide you with advice and specific tips for filling out the form, or better yet, should be able to fill it out for you at a reasonable price. That way, you could have peace of mind knowing that the form is filled out in accordance with IRS guidelines, and should avoid any trouble with penalties and fines.

I would recommend against filling out the form yourself if you are not sure you will be able to do it in accordance with IRS guidelines. However, if you do wish to do it yourself, using the guide on the IRS's website is probably the best way to ensure it is filled out as correctly as possible. Please also remember that this does not constitute professional or legal advice, but is informational only, and you should always seek professional advice on tax matters that you are not familiar with. I hope this information helps you make an informed decision.