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Point of order, the former client has a plan, not you. Usually in wrapping up a corporation, final actions include appointing an officer to wrap up its affairs in an orderly manner. Who was named to do so? Also, who were the trustees? Do they want an IRS/DOL non-filing inquiry in a couple of years? Who will respond to it and what will they say? If they don't response, they may get an investigation. At that point sucks to be them, running up lawyer fees with no plan or corp to pay. Their choice.

You don't want the DOL to get the perception that the client cannot be bothered with the final 5500 filing or even worse, the DOL perceives the clinet is disregarding the DOL. They will not go away until they have what they want. The folks in TEGE are a bunch of swethearts by comparison to the DOL.

I am not aware of a specific rule about your question. But consider this reasoning: If, after the military service, the participant returns to work and qualifies for a makeup nonelective contribution, it is determined on the would-have-been as if she had been actively at work. The makeup contribution does not count against nondiscrimination measures for the year in which the makeup contribution is made. To allow relief also in the leaving-for-military year would count the same benefit accrual twice. I understand this introduces some distortion in measures for the leaving-for-military year. But perhaps that’s a cost of needing rules that can’t wait for knowing whether the participant completes the military service, returns to work, and qualifies for the makeup contribution. Consider what would be in the 2019 tests if the participant does not return after the military service.

Remind them that penalty for failure to file can be severe between IRS and/or DOL and suggest they find a responsible signor.