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$2,586 per day!


Peter Gulia
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ERISA § 502(c)(2)’s civil penalty for a failure to file an annual report is $2,586 per day.

88 Fed. Reg. 2210, 2219 (Jan. 13, 2023).

If a plan’s administrator is off by one year and three weeks, that’s about $1 million.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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Yeah that is  why the DOL program that caps the fine is so important. 

It used to be you could try to ask for some kind of forgiveness but at this point the down side is too much.

Likewise the filing a form without the auditor's report but a note is getting riskier also.   That fine for an information return with no tax implications is just plain silly

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On 1/23/2023 at 8:34 PM, Peter Gulia said:

ERISA § 502(c)(2)’s civil penalty for a failure to file an annual report is $2,586 per day

Note the penalty is UP TO $2,586/day.

I would think the administrator would have to be extremely recalcitrant in not filing to extract that sort of penalty.

Has anyone seen the max penalty applied by either the IRS or DOL?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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