DFVC and Form 5500 EZ

[Guest jigpsu100]

I know that a Form 5500EZ filer is not eligible for the DFVC, but does anyone have a suggestion for how to handle delinquent 5500EZs? I have a situation where a friend failed to file their 2003 5500EZ and had a balance of $.27 in 2004 when they terminated the plan. They haven't heard anything from the DOL/IRS and have the forms ready to send. Does anyone have any suggesitons on how to proceed?

[WDIK]

1) Please verify that the 2003 filing was required (in other words plan assets at some point exceeded $100,000.)

2) What was the value of the trust investments at the beginning of the 2004 plan year?

[Guest jigpsu100]

In 2003, the highest account balance was $82,000, but it was over $100,000 in 2002, so I think it is required for 2003.

In 2004, the highest balance was 24 cents. A final should have been filed.

I am thinking that sending both Form 5500EZs with a note of explaination may be the best approach. If you have any other thoughts please let me know. Thanks.

[WDIK]

but it was over $100,000 in 2002, so I think it is required for 2003

I agree.

In 2004, the highest balance was 24 cents.

At first, it seemed strange to me to do a final filing that would show a zero (rounded) balance at both the begininng and ending of the plan year, but that would seem to be the case.

note of explaination may be the best approach

Other threads use the term "tear stained letter", which seems to be the best available option.

[JanetM]

Just to clarify, even if assets never exceeded $100,000 a filing is required upon termination.

I would send the last EZ with letter explaining and beg forgiveness.

[Guest jigpsu100]

I think that's the approach I'll suggest. Hopefully we'll get an understanding agent.