Late 5500

[R. Butler]

We have a taken over a plan that filed their 5500 lasr year about 15 days late. Its a large plan & they did not attach an audit (doesn't sound to me like it was completed.). They did not use DFVC. They received a notice form the IRS today assessing a penalty of $175. (Evidently the IRS hasn't noticed yet that the audit is not attached.) The Department of Labor has not sent any notice. If they hurry, can they get the audit completed & refile under DFVC? I've reviewed the program & seems to me that they would be O.K. to do that as long as it is done prior to the DOL giving notice.

Thanks in advance for any guidance.

[Archimage]

Yes, you can still go through DFVC. I have had the same situation happen a few times. I do the DFVC and then send a letter to the IRS requesting that they waive the fee due to the DFVC filing. They waived it everytime.

[Bill Presson]

Just don't wait around. As soon as the DOL letter comes, it's too late.

[Santo Gold]

I have a similar situation that perhaps someone could comment on. Client did not file 5500's for the past 2 years and just realized it now. He was not aware of DFVCP and just last week filed the late forms as he normally would. The potential penalty for filing late would exceed the $1,500 DFVCP fee (small plan). Would anyone recommend filing them again through DFVCP right away. I think that is the way to go, but I am concerned as to whether the plan could be in "double jeopardy" of paying the $1,500, plus also having to pay additional late fees because of where the original filings were sent last week.

Any comments are appreciated