Hey there, Executive!

If you’re a tax professional advising business owners who’ve set up solo 401(k)s or similar plans, here’s a strategy you can’t afford to overlook: IRS Form 5500-EZ.

Many tax pros—especially those working with S Corps, consultants, or small partnerships—don’t realize that a missed 5500-EZ filing can result in penalties of up to $150,000 per return.

Yes, that’s six figures for a missed two-page form. The IRS doesn’t bundle this with your client’s 1040, and most CPAs or preparers don’t include it by default unless specifically engaged.

This is where you step in to rescue clients from preventable disasters.

Raise your hand if you fall into any of these categories 🙌🏾—offering premium tax advisory services, helping your clients stay compliant, or positioning yourself as a forward-thinking tax strategist. If any of that sounds like you, then this topic is your golden ticket.

And if you’re not implementing these yet? It’s time to level up. Your ability to translate complex compliance into real savings is what sets elite tax professionals apart—and inside The Executive Touch, we train you to do exactly that.

The Hidden Penalty That Could Derail Your Retirement Plan 🗞️

Meet “Victor,” an independent consultant and S-Corp owner who set up a solo 401(k) years ago. He rolled over funds from an old employer, accumulated assets fast, and… forgot one key thing.

He never filed Form 5500-EZ.

He wasn’t trying to cheat the system—he simply didn’t know he had to file. His CPA focused on the 1120S, but Victor himself was the plan sponsor.

Fast forward: IRS sends a CP 403 notice with a $112,500 penalty attached. Why?
Because the plan passed the $250K threshold 15 months ago, and the IRS wants answers.

How We Helped Victor Get Back on Track:

✔️ Confirmed he qualified for the IRS Late Filer Penalty Relief Program
✔️ Submitted 3 years’ worth of delinquent 5500-EZs with supporting docs
✔️ Filed paper forms with a $1,500 cap fee (versus $450,000 in max penalties)
✔️ Ensured future 5500-EZ compliance was added to his annual tax calendar

Because he acted before the IRS issued a final CP 283 penalty notice, Victor avoided the crushing penalty. Imagine his relief.

If your clients manage their own plans (especially high-income solos), you need to know these filing deadlines cold—and build advisory services around catching these issues early.

🧠 BOARD MEETING TAKEAWAYS — June 19

Our latest Board Meeting was 🔥. Here are the biggest lightbulb moments:

✔️ Post your pricing publicly — Stop wasting time on price-shoppers
✔️ Add an explainer video — Cut confusion on what tax planning actually includes
✔️ Make clients jump through hoops — A pre-engagement process filters out poor fits
✔️ When to hire W-2s? — Don’t wait until burnout. If revenue is predictable, it’s time.

These kinds of conversations are just the tip of value-iceberg we deliver inside The Executive Touch.

🇵🇷 Where You Can Find Angie

I’m currently at The Tax Mob ‘25 Conference in Carolina, Puerto Rico, June 24-27!
If you're here, let’s meet up!

🎉 And after the conference, we’re heading into our Executive Touch Retreat—a powerful, in-person container for high-level pros building legacy firms.

Want to stay ahead with tax-smart strategies?

Join The Executive Touch—our exclusive community designed for experienced, forward-thinking tax professionals who are serious about staying ahead of the curve.

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Each week, we dive into real-world case studies, IRS nuances, and high-impact planning techniques that help you better serve your clients and grow your practice with clarity and confidence.

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Closing Thought 🎯

This week’s strategy was all about retirement plans—but the deeper point is this:

That’s what we teach inside The Executive Touch.
Not theory. Execution.

Let’s keep building. Let’s keep growing.

At your service,
– Angie Toney, CPA/PFS, CTS
Your Friendly Guide to Premium Tax Strategy

^_Disclaimer

^{_{The content shared in this newsletter, including any strategies, tax scenarios, or business insights, is intended purely for educational and informational purposes and should not be taken as personalized professional advice. Examples discussed are illustrative in nature and not guarantees of any specific tax outcome or business result. Your results may differ based on your unique circumstances, efforts, and changing external factors.}}

^{_{Remember, tax and business decisions are highly individual and influenced by many factors such as evolving regulations, personal expertise, and market conditions. We encourage you to seek advice from qualified tax and financial professionals before making significant decisions that could impact your business or finances.}}