katieinny Posted July 18, 2011 Share Posted July 18, 2011 The ER discovered that EE and ER matching contributions weren't made to the company's SIMPLE IRA plan for a period of about 18 months. He immediately made arrangements to make the missing contributions including lost earnings. He filed under VCP and will be getting a compliance letter. However, the draft of the letter says that the IRS will not disqualify the plan, but it doesn't make reference to any penalties. I've determined that 4972 doesn't apply, but I'm not so sure about 4979. The IRS says 4979 penalties don't come under the scope of VCP. I want to make sure that our client covers all his bases. Should I be concerned about 4979? Link to comment Share on other sites More sharing options...
Gary Lesser Posted August 22, 2011 Share Posted August 22, 2011 ABSOLUTELY. Link to comment Share on other sites More sharing options...
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