Reasonable cause request with DFVC as reserved alternative??

[chris]

Client thought plan was terminated in 1996. Client says TPA was to handle everything. No 5500's filed since then. We are considering DFVC with the DOL. Question is whether it's possible to file a request for waiver of penalties based on reasonable cause and reserve the right to utilize DFVC program if DOL finds the facts alleged do not amount to reasonable cause? The request for waiver will be filed with the IRS as well. It appears that the IRS is currently asking for the 1997 and 1998 5500's. May be that the sentiment is that it will be less costly and burdensome to go ahead and pay 6,000 for the non-filed 5500's than to try to deal with DOL as to reasonable cause and possibly lose the ability to use DFVC???? Welcome your comments.

[Guest death and taxes]

We have been using the reasonable cause letter approach for late filings before 1999. I am also curious about the best approach for filing 1999 and forward. The letters have worked well in the past and we have avoided penalties. I think we may not be so lucky going forward and may decide to go the DFVC route. If you received info outside of this forum, I would be interested to hear your comments.