SSRRS Posted October 20, 2022 Share Posted October 20, 2022 Hi, At 250 a day for late 5500, isn't that quite steep...is there a grace period? Yes, there Is the DFVCP, however tax returns allow to file a few days late with barely any penalty (relatively). Thank you for any insights etc. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted October 21, 2022 Share Posted October 21, 2022 13 hours ago, SSRRS said: Yes, there Is the DFVCP I think you answered your own question. How many ways are they supposed to give you to fix your own mistakes? Lou S. 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Riley Britton Posted October 21, 2022 Share Posted October 21, 2022 Well there is a grace period, it's called an extension! There is no excuse for not getting it done timely baring unforseen weather issues, etc. Link to comment Share on other sites More sharing options...
CuseFan Posted October 21, 2022 Share Posted October 21, 2022 Those penalties were magnified so additional revenue could be manufactured, real or imagined, to offset the cost of SECURE (or maybe CARES). I wonder if the government tracks the actual revenue raised from these changes during the 10-year budget period versus their projections used to get the law passed. Like pension contribution relief, which was supposed to reduce pension contributions and deductions to increase tax revenue. Who is most likely to cut back on their pension contributions? Companies losing money (so paying little or no taxes) that don't need deductions and tax-exempt NFPs that don't pay taxes - so all that did was further weaken already under funded plans which further stressed the PBGC and likely raised very little of the projected additional revenue. Sorry, didn't mean to go off on a rant, talk about tangents, or as my wife and I say to each other in such instance - squirrel! SSRRS and Dave Baker 2 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
Lou S. Posted October 21, 2022 Share Posted October 21, 2022 Yes the penalties are steep, some have said draconian even. But they are what they are. Don't be late and if you have to be, file under DFVCP. And don't forget I'm pretty sure the penalties accrue from the original filing due date and not the extended filing due date. So if you think you are one day late on October 18 this year, I think you are closer to 79 days late as far the IRS is concerned. SSRRS 1 Link to comment Share on other sites More sharing options...
thepensionmaven Posted October 22, 2022 Share Posted October 22, 2022 Client filed 10/20, did not check box DFVC. If he gets IRS Notice, Letter, whatever, can he file as an amended and go DFVC, or did he need to initially file under DFVC? Next, is there a time limit between the filing under DFVC and actually submitting the filing and paying the fee. Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted October 22, 2022 Share Posted October 22, 2022 On 10/21/2022 at 2:02 PM, CuseFan said: I wonder if the government tracks the actual revenue raised from these changes during the 10-year budget period versus their projections used to get the law passed. DC math is never close. Lou S. 1 Link to comment Share on other sites More sharing options...
Lou S. Posted October 24, 2022 Share Posted October 24, 2022 On 10/22/2022 at 7:53 AM, thepensionmaven said: Client filed 10/20, did not check box DFVC. If he gets IRS Notice, Letter, whatever, can he file as an amended and go DFVC, or did he need to initially file under DFVC? Next, is there a time limit between the filing under DFVC and actually submitting the filing and paying the fee. Good question. I randomly ran into a potential client in nearly the same situation. My understanding is you can file DFVC up until the point you receive a penalty assessment. Can anyone else confirm or refute that? Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted October 25, 2022 Share Posted October 25, 2022 4 hours ago, Lou S. said: Can anyone else confirm or refute that? Sort of... You can file DFVCP as long as you have not received a DOL notice of intent to assess a penalty. You are still eligible for DFVCP if you receive an IRS penalty assessment. For the IRS late filer penalty relief program (for EZ filers), you are no longer eligible if you receive the IRS penalty assessment. Lou S. and Luke Bailey 2 Link to comment Share on other sites More sharing options...
thepensionmaven Posted October 25, 2022 Share Posted October 25, 2022 Here's a goodie. Client filed late, is it beyond the realm of possibility to amend and go through DFVC? Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted October 25, 2022 Share Posted October 25, 2022 2 hours ago, thepensionmaven said: Client filed late, is it beyond the realm of possibility to amend and go through DFVC? Nope, that's what I would do. Luke Bailey 1 Link to comment Share on other sites More sharing options...
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