Enforcement Activity Around Missing Form 5500s

[401 Chaos]

Has anyone seen any recent DOL enforcement actions related to missing Form 5500s. In this case, plan sponsor failed to file 5500s for several welfare plans. No 5500s have ever been filed for these plans so they are not on anybody's radar--i.e., this is not a situation where the IRS might send a notice asking why the 2010 5500 was missed and client could then move through DFVC to address both DOL and IRS concerns. I know there could always be a random audit by the DOL that might discover the missing Form 5500s which would then preclude the use of the DFVC program. My specific questions are (1) has anybody seen such audits by the DOL, particularly in recent years and/or seen the DOL hit these issues in audits primarily investigating other areas? and (2) if somebody has seen such audits, what sort of fines does the DOL typically impose.

We have not seen any DOL action in this area in a very long time so would appreciate hearing from anybody with recent experience. The company plans to go through DFVC but question is how quickly they need to do that. They only have records for the most recent years and are trying to determine how far back the filings need to go. They believe they have the records that will permit them to determine number of participants (and likely an estimate of premiums) but it will require some digging through files in storage.

At some point the cost of continued digging for exact numbers doesn't seem all that worthwhile but the risk of enforcement concerns also doesn't seem to merit simply winging it and throwing together 5500s with estimates for years that may or may not have had more than 100 participants. Thanks.

[Guest LLHarlow]

401 Chaos;

It's been more than six months since your posting but in the event it's still helpful, I'll share a current project in my practice. Our client received an email (can you believe it, an email?) from the DOL in May 2013 asking about welfare plans. The email was received at the Form 5500 signer's EFAST email address and it essentially says "we noted that you are required to file a full Form 5500 due to number of participant but we have not recevied a Form 5500 for a welfare plan".

Unfortunately, our client did have at least two Form 5500 filings for at least three years each. We expect them to receive a penalty notice in the coming few weeks. The moral of the story is

[Bill Presson]

Yes, the DOL is actively doing this.

http://www.cshco.com/News/Articles/DOL_begins_campaign_for_missed_welfare_benefit_plan_filings/

[401 Chaos]

Thanks for the additional information. I had not seem this much detail around the DOL initiative before.

Just out of curiosity, any idea whether the DOL is focusing on particular size retirement plans / employers as part of this review (e.g., seems like there's a pretty good chance that all employers with maybe over 150 to 200 retirement plan participants could be good candidates for needing to file a 5500 for health or welfare plans)?

Thanks