Software Streamlines IRS Forms for 401(k)s

Milwuakee-based entrepreneur Timothy M. McCutheon hopes to use his experience drafting 401(k) plans to help the Internal Revenue Service streamline its paperwork. 

McCutheon has accepted a three-year position at the Information Reporting Program Advisory Committee of the IRS.

The 54-year old owner of Fort William LLC created computerized forms for 401(k) plan sponsors and their advisors.

The goal is to help federal agents understand its policies’ impact on taxpayers.

In his first meeting since being appointed in January, McCutheon took up discussion of Form 5500, the annual filing all retirement plans complete and file with the IRS, Department of Labor and Social Security Administration.

Presently, the form takes about two hours for sponsors to complete, and the federal government receives about 1.5 million each year. 

“The IRS is not using a lot of the data [collected on the forms],” he said. “We want them to slim down,” he said.