Delinquent Filer Voluntary Compliance Program

[Guest Tim Finn]

Does anyone have experience using the Delinquent Filer Volunary Compliance Program in the following situation:

A 403(B) plan recently discovered that it has a Form 5500 filing obligation because the employer makes contributions in addition to the employee deferrals. The plan administrator wants to bring the plan into compliance. It is contemplating using the DFVCP but the plan requires a complete return including all schedules and attachments for each year that relief is requested. The plan does not have the necessary information to make complete returns for all outstanding years.

Any idea how to approach this in a DFVCP? Any other ideas?

[jpod]

If it is a 403(B) plan, there are no schedules or attachments required. You have to go back and look at the instructions for each year, but I believe that you will not have to assemble any financial data for any year. If the plan never had more than 120 participants, the total stipulated penalty under DFVCP would be $750.