5500EZ... DFVC not available.... ?

[K-t-F]

I was called by a man who has a plan where he is the only participant. The financial institution who established the plan did not tell him he needed to file an EZ once the assets were greater than $100K (or that is his stroy and he is sticking to it). The CPA completed the EZ going back to 2004 and 2005. He received a notice from the DOL stating he owed $8800 in penalties.

He produced for me some good info to argue that possibly he was a victim and if possible could the penalties be waived. I looked at the DFVC requirements and learned that a one participant 5500EZ filer is not eligible. I have a call into the DOL to ask what his options are.

Has anyone any experience in a similar situation?

Thanks!

[jpod]

If he was eligible to file an EZ then the DOL would have no jurisdiction to assess penalties. IRS could assess penalties, however.

[Bird]

I think a lot of people here will tell you that if you beg long enough and hard enough that you can get EZ penalties waived.

But...I thought EZs were processed by the IRS, not the DOL.

[K-t-F]

ahh... the letter is from the IRS... it is a followup to a letter he received from the DOL.

What I have read is to put everything on the table and have a plan to fix everything.... assure them that it will not happen again by having new procedures inplace (new TPA, not rely on the CPA to file) and do it QUICKLY!

I am guessing a "TSL" (tear soaked letter) attached begging that penalties be waived is the only course to come away with his shirt still on his back?