Jeffry Lamb

I had a similar issue with a client. Filed 2009-2020 and client got a penalty for 2011 10 months later. Faxed in the forms and have not heard back yet (roughly 3 months with no response).

I agree with this analysis but have a follow up question. Many actuaries seem to think the 2022 accrual would need to be included in the 2022 RMD (per prior CPEs, review notes, etc). However, I cannot find anything in a Plan Document, the regs, the ERISA outline book, or anything to legally back up this interpretation. It seems like a "you can but do not have to situation". My best guess is that actuaries have this interpretation based off not working on or understanding DC Plans. But maybe there is something in 417 or another section that I have not seen yet. I'm still digging to prove myself wrong! Any follow up comments are greatly appreciated as I am giving a part 2 CPE on DB RMDs in a few weeks, and none of my peers agreed with my stance during part 1. I am always happy to be wrong, but I believe i am dealing with an overly conservative interpretation.

Only had to do it once, cited the reasoning (unpaid bills, didn't provide census info to complete the work), then I regret to inform you that, effective immediately, I will be resigning as the actuary for the Plans listed above and will no longer provide any services related to the Plans. You should be aware that there are actions associated with your Plans that have upcoming deadlines. We will not be responsible for any missed deadlines or for work requested after the date of this letter.

Interesting topic. In the past decade I've spent approximately 33 hours defending clients under audit and 7 hours reviewing dfvcp filings, out of about 20,000 hours of work. I've probably also done 100 hours asking for abatement of irs penalties for late filing of 5500s (obviously for takeover plans, not my plans , none of my active clients have ever filed a late 5500), or using the late filing EZ relief program. Real rough numbers I'd estimate over that decade and 200,000 hours of consultant work among my peers at my company we've had in total about 240 hours of audit and dfvcp work. And I'd guess maybe 40ish% have never had to put their name on a 2848. Again, real rough nunmbers, but hope it helps. I'd be very curious to see the end results of this research project. As a side project I'd also be curious what percentage of peoples plans are audited and why they think they are audited.

DFVCP does not relieve filing penalties under Title IV (page 2 https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/fact-sheets/dfvcp.pdf). Since you have already received a letter, I think your best option is to beg forgiveness. I had a client whose CPA did the 5500s, and missed two 5500s. He submitted them immediately in a panic before I could advise to use DFVCP. Soon came the IRS penalty letters. I drafted a letter to the IRS for him describing the error, and telling the IRS that he hired a new advisor to ensure this error does not happen again. Nine months later they waived the $120,000+ in late filing penalties. If it was not too late to file a DFVCP that would be option 1, but it is nice the IRS still is willing to waive penalties if you explain the reason for the error and the steps to ensure it won't happen again. I'd be hopeful you can get it waived, though it might not occur until 2023.

Ignoring the specifics mentioned above, is the multiple employer plan made up of unrelated employers while the single employer plan is made up of two or more entities that are considered a related service group (ASG, CG?) and can be treated as a single employer for IRS purposes?