Non-Profit DFVCP filing

[KevinMc]

I have a non-profit who has only ever filed an "informational" return, which is to say the 5500 with just basic information and no schedules. They received an IRS letter that their 2006 return was not received. Is an entity filing in this manner eligible for the DFVCP? Also, is an entity filing in this manner now required to file a more detailed return in 2009 and going forward? Any help would be appreciated.

[PAL]

I'm guessing this is for a 401(b) and I believe the DFVCP can be used if they have only received notice from the IRS (and not the DOL). From the DFVCP fact sheet:

Small plans sponsored by certain tax-exempt organizations. A special “per plan” cap of $750 applies to a small plan sponsored by an organization that is tax-exempt under Internal Revenue Code §501©(3). The $750 limitation applies regardless of the number of late annual reports filed for the plan at the same time. It is not available, however, if as of the date the plan files under the DFVCP, there is a delinquent annual report for a plan year during which the plan was a large plan.

[Guest Form5500]

Effective for plan years beginning on or after January 1, 2009, all non-profit 403(b) plants that are subject to Title 1 of ERISA, will be subject to the same reporting requirements that apply to other tax-qualified retirement plans (this includes the audit requirements for plans with over 100 participants. Currently, nonprofit sponsors of 403(b) plans are only required to complete a limited number of line items on the Form 5500 to satisfy applicable reporting requirements.

Based on the facts you provided, it sounds to me like your non-profit completed the limited Form 5500. If that's the case, it does not need to file under the DFVC program. All you will need to do is send the IRS a copy of the Form 5500 that was filed with the DOL. I've had several clients that received a notices from the IRS saying they didn't file, when they did. The DOL and the IRS are too separate governmental agencies and sometimes don't always communicate. This can be an easy fix...just sending them a copy with a letter.

If your non-profit never filed the 2006 Form 5500, they are eligible to file under the DFVCP if the have not received a letter from the DOL, yet.