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DOL Email Regarding Missing 5500


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Client recently received an email from DOL--Office of the Chief Accountant, Division of Reporting Compliance--indicating that their 5500 for 2020 is missing.  The email includes an invitation to consider participating in DFVCP to pay reduced penalties for failure to file in a timely manner.  Email also provides links to DFVCP FAQs, one of which notes plans are eligible to file under DFVCP so long as they have not received written notice from the Department of a failure to file their 5500.  Huh?  We've seen situations where folks received notice from the IRS and then filed under DFVCP before any DOL notice but this DOL notice appears to be the first notice the plan has received.  Is the email they received sufficient to prevent them from using DFVCP or is this short of the disqualifying notice indicated in the FAQs.  Is this a new process or have we just not been privy to this before?  Thanks for any insight you can provide.

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I called EFAST when I received the first email of this type. They answered just short of saying they are testing a new system. They did say that it is not a notice of late filing, it is a reminder to file with options available to do so.

In my case the client already filed, the agent even confirmed that the form was received in good order but asked that I still email back a responce with the ACK#.

To me it feels like a new system is being tested. 

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I posted on the same subject last week.

Same situation, we responded to the email, complete with DOL acceptance and included our FEMA attachment.

Every EFAST filing has been check marked "Special Extension- New York - Hurricane Ida- FEMA- 4615-DR", but due to these new emails, will add separate attachment advising same information.

Whether they are testing a new system or not, this is irritating to the client and they pass it on, when a client receives a letter or email. And who do they blame?  The TPA, of course.

Would expect this from IRS, but not DOL.

 

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Thanks to you both for the additional information.   In our case, there is no Hurricane Ida issue.  Small nonprofit lost their founder / executive director to cancer mid-year and the filing just got missed with that, COVID, other staff changes.  I think they have as good of a reasonable cause request as exists but they may be inclined to just file under DFVCP and pay the $750 since DFVCP appears to still be possible.  Thanks again.

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I've recently received the same for a couple clients and in each case the plan had become an owner only plan and filed 5500-EZ.  Although I had a client come to us several years ago after receiving a similar email, it is more of a "friendly reminder" rather than a formal notice.  Before that, I'd never know the DOL to email anyone.

 

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Late to the party but they did this last year as well.  I responded to a handful at my old firm last year and we have received more than that this year.  We did confirm last year that the email is legit and that it does not preclude you from filing DFVCP. When I spoke to the DOL last year they said that they basically compared the returns they expected to see to the the returns that were actually filed.  In some cases the returns were filed after Oct 15 but well before other extensions like disaster extensions. We calculated that the DOLs "filed" list was pulled 3-4 weeks after October 15.

I hope that helps anyone still scratching their head on this.

 

 

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Thanks for the additional information.  We heard back from DOL with similar guidance.  Kudos to them for doing this I think but seems they might clear up some confusion by adding a note to the email indicating this "reminder" does not preclude filing under DFVCP.  I suppose that's sort of obvious given their invitation to use that but would just be good to clear up any confusion.  Thanks again.

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  • 2 weeks later...
  • 1 month later...

Does anyone know whether the Labor department yet has sent delinquency or deficiency letters on 2020 Form 5500 reports that ought to have been filed by October 15, 2021?

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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On 4/11/2022 at 9:30 AM, Peter Gulia said:

Does anyone know whether the Labor department yet has sent delinquency or deficiency letters on 2020 Form 5500 reports that ought to have been filed by October 15, 2021?

I haven't seen any, just a few batches of these friendly reminders.

I don't mind these to be honest, even when they have missed that they were filed with a disaster exemption.  The DOL has been a lot easier to work with on these Form 5500 matters than the IRS since its almost impossible to get through to them.

 

 

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