5500ez late filing penalties

[Gary]

My understanding is that if a 5500ez filer is late the penalty is $15 per day up to maximum of $15,000.

I also believe this applies for each return.

So if ten returns were not filed then the total fine could be $150,000.

Are we in agreement?

Now how might the statute of limitations apply if at all? That is, if after a certain amount of time has passed and there has been no word from the IRS re: late filing, does that mean the fine cannot be assesseed?

thanks

[Effen]

Although technically the DFVCP does not apply to EZ filiers, my understanding is that the IRS will go along with the penalties stated in that program, assuming they have a valid reason why they didn't file.

I would say you are looking at $1,500, not $150,000.

[K2retire]

As I understand it, the statute of limitations begins to run when you file the return. So if you're asking if you can skip the filing because it has been too long, I don't think so.

[jpod]

I agree with Effen, but only if you file the later returns before Uncle comes looking for you.

[Gary]

thanks

a couple of things.

I think it is $25 per day and I mistakenly put $15, but not relevant in this case.

WHile they are 5500EZ filers, in order to get VC relief should they file thru VCF or just file thru IRS and hope IRS gives the same deal?

I believe some filers try and file a 5500 (pre e filing days) instead of ez and send to VCF and request max fee. not sure if that has been heard of and i dont think it would work these days.

And lastly, if it is only one plan wouldn't the maximum fine be $750? and not 1,500?

thanks

[SoCalActuary]

thanks

a couple of things.

I think it is $25 per day and I mistakenly put $15, but not relevant in this case.

WHile they are 5500EZ filers, in order to get VC relief should they file thru VCF or just file thru IRS and hope IRS gives the same deal?

I believe some filers try and file a 5500 (pre e filing days) instead of ez and send to VCF and request max fee. not sure if that has been heard of and i dont think it would work these days.

And lastly, if it is only one plan wouldn't the maximum fine be $750? and not 1,500?

thanks

If it is only one year, the DOL rule is $750. If multiple years are involvd, then you get the $1,500 cap.

But the IRS does not have to follow these rules, so every deal is what you make it.

Alex Brucker has put a lot of work into getting IRS to change their position, and you should go to pensionlawyers.com to find out more.

[Effen]

A client of our recently filed 5 years of EZs. We just filed with the IRS at the normal address with a letter of explaination. We filed about 2 months ago, and still haven't heard anything.

[SoCalActuary]

A client of our recently filed 5 years of EZs. We just filed with the IRS at the normal address with a letter of explaination. We filed about 2 months ago, and still haven't heard anything.

Expect the IRS to try collecting megabucks in penalties. The taxpayer might be stupid enough to pay before asking you.

But if you stay on top of this, you might prevail.