Has missed past 2 5500 filings

[Santo Gold]

Calendar year 401k plan. The client last filed a 5500 for the 2003 plan year. The IRS sent a letter last week looking for the 2004 5500. Although the forms were prepared by the recordkeeper, they were sent to the client, who didn't realize they needed filed, so they were put in a drawer:

1) I plan on drafting a letter to the IRS, telling them the trust and asking for mercy. Are there any better ideas?

2) Is it too late to file the 2005 form through the IRS 5500 program, just paying the $750? Is that not an option since the 2004 form is on the IRS radar?

Thanks

[JanetM]

That is where I would start. I would try to include the 2004 filing if you have solid grounds for groveling and begging. Years ago I had this with a few of clients. The only circumstance the IRS allowed as grounds to waive the fees was when the staffing changed. The person who had been signing and filing the return was replaced and the incoming person thought the business owner signed the return. The owner assumed the new controller signed the return.

[jpod]

My recollection is that if you have only been contacted by the IRS (and NOT the DOL), the DFVC program is still available for 2004, as well as 2005.