IRS Form 14704 – IRS Forms, Instructions, Pubs 2026 – If you’re a small business owner or self-employed individual with a one-participant retirement plan, staying compliant with IRS filing requirements is crucial. However, life happens, and sometimes deadlines slip. That’s where IRS Form 14704 comes in. This form is the key to accessing the Delinquent Filer Penalty Relief Program for late Form 5500-EZ submissions, as outlined in Revenue Procedure 2015-32. In this comprehensive guide, we’ll break down everything you need to know about Form 14704, including its purpose, eligibility, application process, and how it can save you from hefty penalties. Whether you’re dealing with a solo 401(k) or similar plan, understanding this program can help you get back on track without breaking the bank.
What Is IRS Form 14704?
IRS Form 14704, officially titled “Transmittal Schedule – Form 5500-EZ Delinquent Filer Penalty Relief Program (Revenue Procedure 2015-32),” is a one-page cover sheet used to submit delinquent (late) Form 5500-EZ returns. It acts as a transmittal document that accompanies your late filings when applying for penalty relief. Introduced in May 2015, this form is specifically designed for retirement plans that aren’t subject to Title I of the Employee Retirement Income Security Act (ERISA), such as one-participant plans covering only the business owner and their spouse.
The form requires basic information like the applicant’s name, address, Employer Identification Number (EIN), plan details, and the number of delinquent returns being submitted. It’s attached to the oldest delinquent return in your package and includes a checkbox to indicate the payment amount based on the number of late filings. Without this form, you can’t participate in the relief program, which offers a capped fee structure instead of escalating daily penalties.
Understanding Form 5500-EZ and Why It’s Required
Before diving deeper into Form 14704, it’s essential to understand Form 5500-EZ. This is the “Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan,” used by small retirement plans like solo 401(k)s, owner-only defined benefit plans, or certain foreign plans. If your plan has assets over $250,000 at the end of the plan year, or if it’s the final year of the plan (regardless of asset value), you must file Form 5500-EZ by the last day of the seventh month after the plan year ends—typically July 31 for calendar-year plans.
Failing to file on time can trigger penalties under Internal Revenue Code sections 6652(e) and 6692. These include up to $250 per day (capped at $150,000 per year) for not filing the return and $1,000 for failing to provide required information. For multiple years of delinquency, these fines can add up quickly, potentially jeopardizing your retirement savings.
The Delinquent Filer Penalty Relief Program Under Revenue Procedure 2015-32
Revenue Procedure 2015-32 established a permanent penalty relief program in June 2015, replacing a one-year pilot program from 2014. This initiative provides administrative relief from late-filing penalties for eligible plans, encouraging voluntary compliance. Unlike the Department of Labor’s Delinquent Filer Voluntary Compliance (DFVC) Program, which applies to ERISA Title I plans, this IRS program is tailored for non-ERISA plans like one-participant and certain foreign plans.
The program is indefinite but can be modified or terminated by future IRS guidance. As of February 2026, it remains active with no significant updates, based on the latest IRS publications and procedures. It offers a fixed-fee alternative to “reasonable cause” relief requests, making it a straightforward option for many filers.
Who Is Eligible for the Penalty Relief Program?
Not every late filer qualifies. Eligibility is limited to:
- One-participant plans: These cover only the business owner (or partners in a partnership) and their spouses, with no other participants.
- Certain foreign plans: Maintained outside the U.S. primarily for nonresident aliens, where the employer has U.S.-source income and deducts contributions on a U.S. tax return.
- Plans that haven’t received a CP 283 Notice (Penalty Charged on Your Form 5500 Return) for the delinquent filings.
- Filers who haven’t been denied reasonable cause relief for the same returns.
If your plan is subject to ERISA Title I or you’ve already been penalized, you’re ineligible. Additionally, electronic filings via EFAST2 aren’t allowed under this program—submissions must be on paper and mailed directly to the IRS.
Step-by-Step Guide: How to File Form 14704 and Apply for Relief
Applying is a structured process. Follow these steps to ensure your submission is complete:
- Gather Delinquent Returns: Prepare a complete paper Form 5500-EZ for each late year, including all schedules and attachments. Use the form version applicable to the plan year (or the current Form 5500-EZ for pre-1990 years).
- Mark the Returns: For years with Check Box D on Part I of Form 5500-EZ, mark it for the IRS Late Filer Penalty Relief Program. For older forms without the box, write in red at the top: “Delinquent Return Filed under Rev. Proc. 2015-32, Eligible for Penalty Relief.”
- Complete Form 14704: Fill out the transmittal schedule with your details, plan information, and the last day of each delinquent plan year. Check the box for the number of returns and corresponding fee. Attach it to the front of the oldest delinquent return.
- Prepare Payment: Calculate the fee (see below) and make a check payable to “United States Treasury.” Include your EIN and plan number on the check. Attach it to Form 14704.
- Mail the Submission: Send everything for a single plan in one package to: Internal Revenue Service, 1973 North Rulon White Blvd., Ogden, UT 84404-0020. Use certified mail or a private delivery service for tracking. If you have multiple plans, submit separate packages.
Note: For post-2005 years with actuarial reports, include a representation that it was prepared, but you don’t need to attach Schedule B/SB.
Fees and Payment Details for the Relief Program
The program uses a tiered, capped fee structure to make compliance affordable:
| Number of Delinquent Returns | Fee Amount |
|---|---|
| One | $500 |
| Two | $1,000 |
| Three or more | $1,500 |
This cap applies per plan per submission, regardless of how many years are delinquent. For example, if you have five late returns for one plan, you pay only $1,500 total. Payments are non-refundable and must be by check—no electronic payments.
Frequently Asked Questions About Form 14704
1. Can I file electronically?
No, submissions must be paper-based and mailed directly to the IRS. EFAST2 filings don’t qualify for this relief.
2. What if I’ve already received a penalty notice?
You’re ineligible for that specific return. Consider appealing or requesting reasonable cause relief separately.
3. Is this program still available in 2026?
Yes, it’s a permanent program with no termination announced. The latest IRS updates confirm its ongoing availability.
4. What happens after submission?
The IRS processes your returns and waives eligible penalties upon approval. You may receive confirmation, but no further action is typically needed if compliant.
Conclusion: Get Compliant and Protect Your Retirement Plan
Dealing with delinquent Form 5500-EZ filings doesn’t have to be overwhelming. IRS Form 14704 and the associated penalty relief program under Revenue Procedure 2015-32 provide a cost-effective path to compliance for one-participant and foreign plans. By acting promptly, you can avoid escalating fines and ensure your retirement plan remains in good standing. Always consult a tax professional for personalized advice, and download the latest forms from IRS.gov to start the process today.
This guide is based on current IRS guidelines as of February 2026. For the most up-to-date information, visit the official IRS website.