Schedule H and VEBA audit

[Guest akwallace]

There is a chance that our accountants will not have our VEBA audit done before 10/15/02.

Does anyone know if there is a penalty if we cannot complete Schedule H and do not have the financial statements filed?

[Guest F1fan]

I believe that the DOL has usually held that an incomplete filing is a considered a delinquent filing until it is filed in its entirety. There are potentially stiff penalties for delinquent returns. The DOL does offer the DFVC program for late filings. Following is a link to a DOL web site regarding the program:

http://www.dol.gov/pwba/faqs/faq_dfvc.html.

If it still appears that the audit will not be complete as you approach the filing deadline, you may wish to discuss the matter with an attorney, accountant, or consultant experienced in such matters.

[E as in ERISA]

Many times the sponsor still files the Form 5500 at 10/15. It then receives a notice from the DOL because there is no audit attached. But the penalties are rarely (if ever) assessed by the DOL unless the sponsor fails to respond to the notices.

This is just practice....I believe that the DOL is entitled to assess the penalties from the start if it chooses. The DFVC is really the legitimate answer.

In a worst case scenario where the audit is not available until after the penalty is assessed, then at least maybe you can use the filing to claim "reasonable cause"?