Timing of DFVC Program Filing

[jukeboy56]

My question is about the language contained on the DOL website and the deadline for filing for participation in the Delinquent Filer Voluntary Complaince Program.

The Plan, which has less than 100 participants, filed its 2004 Form 5500 but kept no proof of mailing. In July 2007, they received a "Request For Information About Your Form 5500" letter from the IRS saying that it had not been received. The Plan responded with a copy of the 5500 to IRS and a response stating that it was timely filed in May 2005.

The IRS sent a follow-up stating that they intend to assess a penalty of $15,000 unless there is reasonable cause or an extension. The letter states that a penalty won't be assessed if the Plan satisfies the requirements of the DFVC Program

The Department of Labor website lists requirements for the DFVC program including:

"...if the required filings under the DFVC Program are made prior to the date on which the administrator is notified in writing by the Department of Labor of a failure to file a timely annual report under Title I of ERISA..."

and further states:

"IRS late-filer penalty letters will not disqualify a plan from participating in the DFVC Program. A Department of Labor Notice of Intent to Assess a Penalty will always disquality a plan."

My question is: Does the IRS letter mentioning an intent to assess a $15,000 penalty disqualify the Plan from participating in the DFVC Program (under the premise that the IRS is acting on behalf of the DOL)? Or, does the disqualifying notice of intent to assess literally have to come from the Department of Labor?

[Sully]

Before you do anything else you might want to take a look at Freeerisa.com to see if they have a record of the filing.

[jukeboy56]

Great idea, but the only years they show without paying for additional research are 2006 and 2005. Is there any other site that would show me if a 2004 return had been received by the EBSA? We don't necessarily need a copy of it, since we already have one.

[jukeboy56]

I guess the other question I have about checking with FreeErisa is how would the DOL have a copy of the filing if the IRS shows no record? Doesn't the filing have to get into IRS's system for the DOL to receive their copy? Does the IRS ever "lose" filed 5500s after the information has been forwarded to the DOL?

[jukeboy56]

Just to follow-up on my own questions, here's what I've found out by talking to the Department of Labor.

It is NOT too late for the plan to participate in the DFVC Program, since they have not received any correspondence from the Department of Labor yet.

The Department of Labor has a toll-free line where plan sponsors can check the status of any 5500 filing: 866-463-3278

[pmacduff]

just a note...the 5500 forms go to the DOL first (EBSA), then the DOL forwards them on to the IRS, which is how they get posted to freeerisa...

[Guest B2Randolph]

Don't sweat the cost when you have to have an old year from FREEERISA. They charge very minimally - like less than $100 per return - actually, I think it is really more in the $30-40 range.