Form 5498-ESA Due Dates

Form 5498-ESA is an IRS form used to report the Coverdell Education Savings Account (ESA) contributions and includes information about rollover contribution for the tax year. This resource page provides an overview of filing requirements, deadlines, and Penalties of form 5498-ESA.

Who is responsible for filing Form 5498-ESA?

Only the trustee or custodian (such as a bank, credit union, or brokerage firm) responsible for the Coverdell ESA files this form.

What Information is Reported on IRS Form 5498-ESA?

• Total contributions made to the Coverdell ESA for the tax year.
• Rollover contributions and transfers between trustees.
• The form also includes identifying information for the beneficiary and trustee.

Last date to file Form 5498-ESA

It is mandatory for every filer to file their return with the IRS before the 5498-ESA deadline to avoid the penalties imposed by the IRS.

Filing Methods of form 5498-ESA

Paper Filing

The IRS allows trustees or issuers to file 5498-ESA Form using the paper filing method. Fill the form and mail it to the IRS before the deadline to avoid penalties.

Electronic Filing

E-filing makes the filing process quick and simple. 5498-ESA Form can be filed easily using the electronic filing method.

Penalty

The IRS will impose a penalty for failure to file on time and failure to file correct information. Filers should file on time to stay compliant with the IRS tax regulations and to avoid penalties.

• 30 days after the due date: The penalty starts from $60 per return to the maximum of $683,000 per year ($239,000 for small businesses)
• More than 30 days later but before August 1: The penalty starts from $130 per return to the maximum penalty of $2,049,000 per year ($683,000 for small businesses).
• After August 1: The penalty starts from $340 per return to the maximum penalty of $4,098,500 per year ($1,366,000 for small businesses).
• Intentional disregard: The penalty will be $680 per return with no maximum penalty.

How to file easily with TaxZerone?

TaxZerone helps you file your 5498-ESA Form easily in just 3 steps.

Step 1: Login to your TaxZerone Free Account

Step 2: Choose Form 5498-ESA and Enter the required details.

Step 3: Submit it to the IRS and issue a Beneficiary copy through ZeroneVault or postal mail.