Late 5500's

[Guest willow]

I talked to a prospect the other day, a non-for-profit entity.

In telling me all their problems, it came up that they have not filed 5500's in a few years on their 401(a) plan.

My question is under the DFVC, is the entity liable for seperate penalties with

the IRS and the DOL?

Thanks!

Willow

[WDIK]

From the FAQ's found here:

Does participation in the DFVC Program protect the plan administrator from other civil penalties that may be assessed by the Internal Revenue Service (IRS) or the Pension Benefit Guaranty Corporation (PBGC) for failing to timely file a Form 5500 Annual Return/Report?

Both the IRS and PBGC have agreed to provide certain penalty relief under the Code and Title IV of ERISA for delinquent Form 5500s filed for Title I plans where the conditions of the DFVC Program have been satisfied. See sections 5.02 and 5.03 of the DFVC Program Federal Register Notice and IRS Notice 2002-23.