Vcp

[Guest Paul]

I have filed a number of Form 5500s under the VCP and had clients pay the reduced penalties for the late filings. I have heard a number of people have filed the forms late and simply sent a statement explaining why the forms are late. Has anyone heard is the government waiving the penalties? I know it is possible to get the penalties waived for a "fringe benefit plan" but it stikes me as odd if the government is going to waive the late filing penalty for a "welfare benefit" if all you have to do is send in a statement.

In other words, it seems unfair to have the VCP and have people pay a reduced penalty if the government is going to completely waive the penalty if you send a statement.