What are you doing regarding late 5500s?

[No Name]

While preparing to send 2003 info to me, client discovers 2002 5500 in his file.

Do you:

Advise him to send now with an excuse.

Advise to go the DFVC program route.

Advise not to file. When (if) the client gets contacted, tell him to say "Here's a copy of the return I filed".

Thanks

[Guest FormsRmylife]

Possible response: You advise him not to file and tell him everything will be OK. Then, you fund a savings account to pay all his penalties for him when the DOL catches up with him. (He is after all holding the original - you want to tell him to photocopy and destoy the original?)

Better response: You advise him to go the DFVC program route in writing. If he does not do it and gets in trouble, it cannot come back on you when all the unreduced penalties are assessed.

[Guest b2kates]

If this is the only late return ABSOLUTELY GO DFVC, cost is minimal. I believe amount reduced to $750 for small plans and $2,000 for large plans for single late return.

[jquazza]

Don't ignore the missed filing, you're only delaying the inevitable. Filing under DFVC is indeed pretty cheap these days and I would go that route unless the penalty using the daily fee is cheaper.

[Belgarath]

Assuming, of course, that it isn't a "one person" plan, which isn't eligible for DFVC.