5500-EZ - failure to file

[k man]

If the sponsor is not eligible for the DFVC program, what do they do to remedy their failure to file dating back several years?

[Guest Emiliano]

File

[k man]

what about the penalties?

[jpod]

Clearly, you must file. And, remember, you must file everything these days at the DOL's filing address.

I am taking at face value that all of the filings are "eligible" for 5500-EZs and are not subject to the ERISA, Title I, filing requirements.

You should file all of them at once, each with its own Statement of Reasonable Cause attached, and preferably everything should be filed under cover of a lawyer's or an accountant's transmittal letter, accompanied by that individual's Form 2848.

Based on my experiences with these things, there is an excellent chance that you will never, ever, hear anything from the IRS about this, good or bad. However, I haven't had this situation since the liberalization of DFVCP. It may be that eventualy the IRS will get around to your situation and will want to impose penalties equal to what the DFVCP penalties would have been if the plan had been subject to Title I of ERISA.