Late 5500's....REAL LATE

[wsp]

Prospect called and asked if we would file his 5500 as his accountant didn't have the software. Told him we would and fee would be nominal if he had all of the answers filled in ahead of time. He wanted to meet and provide me with data...which should have been my first clue to run! Turns out he has never filed...plans have been around since 92.

Questions are..which forms to file?

92-96 owner is only participant..... 5550 EZ? If I file that I'm not eligible for DFVC am I? Would I be better served filing C/R? Can I even file C/R?

97-2002 owner had an employee...obviously file 5500

2002 employee terminates and takes distribution

2003 file EZ again or 5500?

2004 new employee gets contribution...Again back to 5500.

So, what do I file in 92-96 and 2003?

obviously we want to minimize the damage here, there's actually 2 plans for each year a MPPP and a PS plan...so DFVC filing for all years would be optimal.

Also, if i'm not required to file as a sole prop with <100k. Do you mark the first return that I do have to file as a first return? seems odd for it to be a first return with a begbal.

[WDIK]

Questions are..which forms to file?

92-96 owner is only participant..... 5550 EZ? If I file that I'm not eligible for DFVC am I? Would I be better served filing C/R? Can I even file C/R?

While it is allowable to file Form 5500-C/R with a single participant, that doesn't help with respect to the DFVC Program. The program is only available to plans subject to Title I of ERISA. This excludes Form 5500-EZ filers and Form 5500 filers for plans without employees.

Since the $100,000 filing exemption appears not to apply (at least for some years), this essentially leaves the option of the tear stained letter for the one-participant years and the DFVC Program for the others.

Also, if i'm not required to file as a sole prop with <100k. Do you mark the first return that I do have to file as a first return? seems odd for it to be a first return with a begbal.

The box you mark does say "the first return filed for the plan".