unfiled late 5500ez

[Guest lip]

If we cannot use DFVCP what can one do?2004-2006 nevr filed in takeover case

[WDIK]

Tear-stained letter.

[Guest Sieve]

I certainly wouldn't reccomend this approach, but I actually once filed under DFVCP without realizing that an EZ filer was not eligible. We soon received the voided & uncashed check back from the DOL indicating that the plan was not eligible for the program, and then we received an IRS letter (yes, apparently the DOL forwarded the case to the IRS) saying that the client was facing a $30,000 fine (total assets were under $250,000 and the plan had been inactive for 9 years). I somehow was able to convince the IRS--I don't recall if the letter was tear-stained or not--that we were only trying to do good, so what was the point of penalizing a do-gooder, and the penalty was entirely abated. It certainly helped that the plan was in the process of terminating as part of a VCP application.

In short, however, I don't really know what to do in that situation. There's no way to correct.

[jpod]

If by any chance the employer is a "first time filer" (i.e., no 5500s were required for any years prior to 2004), that point should be HIGHLIGHTED in the tear-stained letter. Have had 100% success with those cases.

[LRDG]

The tear stained letter should also emphasize how poorly the transition was handled. Be specific pointing out what led to the failure to file oversignt, highlight the previous administrator's errors, plead ignorence on behalf of the plan sponsor and new administrator. Offer to do whater is necessary to correct.

I strongly recommend making an attempt to include the missing 5500s. If you don't have forms for the missing years, cross out pre-dated forms and insert by hand the correct year. Complete as much info as possible. The effort alone will go a long way in your favor. With end of year reports or available date, etc., you may be able to provide more data than you realize, and the EZ form might not require the depth of info as a full 5500. Submit the form with tear stains included, in addition to TSL as they have proved successfull in the past.

[Guest Sieve]

But still be prepared to receive a penalty letter for late filing. Then you can write another tear-stained letter.

[Guest bobolink]

I remember taking the position that a single ee or ee plus spouse plan didn't have to file EZ, thus could filee 5500 and use the DFVCP. That way, the exposure is quantified. Read the form instructions and see if you agree.