Effective in 98, but NEVER Filed 5500`

[austin3515]

Profit Sharing Plan effective in 98, but never filed a 5500. Plan is now terminating. Durign the termination process, it was discovered that no 5500's were ever filed.

How far back do you go?

I proposed 3 years under the DFVC program (2009, 2008, 2007), plus the regular 2010 filing.

[bzorc]

I had somebody in this boat, going back to 1998. I did all of the years, since the DFVCP sanction is only $750. Better safe than sorry....

Profit Sharing Plan effective in 98, but never filed a 5500. Plan is now terminating. Durign the termination process, it was discovered that no 5500's were ever filed.

How far back do you go?

I proposed 3 years under the DFVC program (2009, 2008, 2007), plus the regular 2010 filing.

[austin3515]

Sure, if you had data going back that far...

[jpod]

A few thoughts.

1. For 2 or more plan years, DFVCP is $1,500 for a "small" plan; $4,000 for others.

2. DFVCP protects you from DOL and IRS penalties only for 5500s for which DFVCP relief is requested, which means you actually have to file a 5500 for a plan year to secure DFVCP relief for that plan year. Therefore, exposure to penalties still exists for 5500s not filed.

3. I would advise the employer to file for every year, with as much data as is available, even if for some years the only data you have is the name of the plan, plan number, etc. I realize that there are new complications associated with electronic filing, but that would be my recommendation nonetheless.

[austin3515]

But is the DOL likely to come hounding you over data going back 4 or 5 years that is clearly irrelevant, when you've already paid the maximum "penalty" under the DFCV.

[jpod]

Probably it won't hound you but I think it is less likely that you'll be hounded if you demonstrate good faith by filing all years' 5500s and completing whatever line items you are able to complete. Others may feel differently, but you want to take your best shot at having every year covered by DFVCP, and I think what I am suggesting is better than keeping your fingers crossed.