Waiver of 4980F excise tax for 204(h) notice

[Guest Rocky]

Does anyone have any insights on how lenient the IRS has been in waiving the 4980F excise tax for employers who have failed to provide a 204(h) notice on a timely basis?

[Guest Sieve]

I would be more concerned, I think, of the ERISA consequences of a failure to give the notice timely--which is that the employees are entitled to the greater of the accrued benefit without regard to the amendment or the accured benefit with regard to the amendment (ERISA Section 204(h)(6) & Treas. Reg. Section 1.4980F-1, Q&A-14).

But I don't know the circumstances under which a waiver of the IRS excise tax will be granted. Some guidelines are provided in Treas Reg. Section 1.4980F-1, Q&A-15.