David MacLennan Posted November 8, 2001 Posted November 8, 2001 Has anyone had any experience in the last year or so with a voluntarily filed late 5500EZ? I have a prospective client whose MP/PSP Assets went over 100K 3 years back, but never filed. I have advised him to voluntarily file the late returns, but would also like to tell him what he may expect in regard to penalties.
Guest Emiliano Posted November 9, 2001 Posted November 9, 2001 PWBA doesn't issue penalties for 5500EZ.
David MacLennan Posted November 9, 2001 Author Posted November 9, 2001 Yes, that's right, they are only filed with the PWBA. I would like to know of anyone's recent expererience with late filings, 5500EZ or 5500.
Guest Jeffrey N Posted November 27, 2001 Posted November 27, 2001 PWBA does not issue penalties for late filing of form 5500's, the IRS does. We have seen a significant incidence of penalties for late filing in the past year. These penalties have primarily been for late filing without the IRS determined "just cause". I would reccommend any filer who is late, to "justify" their reason for tardy filing and request the penalty to be "waived".
k man Posted June 14, 2002 Posted June 14, 2002 is the compliance method/Program essentially throwing your self at the mercy of the IRS?
Steve72 Posted June 14, 2002 Posted June 14, 2002 There is some inaccurate information in this thread. Both the DOL (PWBA) and IRS assess penalties for late filing of a 5500 (for those 5500's required by ERISA and the Code). The corrective measure sponsored by the IRS is, effectively, throwing yourself on ther mercy. Anecdotally, they are usually fairly reasonable about granting penalty waivers. However, if the 5500 is required by both DOL and IRS, DOL sponsors a program called DFVCP, which significantly lowers the penalty. The IRS has recently agreed that any form filed under DFVCP will not be subject to IRS penalties. Of course, you've still got to file before either agency catches you......
k man Posted June 14, 2002 Posted June 14, 2002 suppose you are dealing with a 5500 EZ? this makes the sponsor ineligible for the DOL program. it seems this is prejudicial because they then cant take advantage of the IRS fee waiver.
Steve72 Posted June 14, 2002 Posted June 14, 2002 You're right. I am unaware of any formalized procedure (other than the IRS's reasonable cause waiver) of filing a delinquent 5500ez. Sorry. I have found the IRS to be very amenable to granting the waiver.
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