Filing One Day Late

[khn]

One of our clients had issues with the auditor finishing their report and didn't file yesterday. What is the best option....can they file today and just cross their fingers? Or, will they have to file through the DFVC program?

[Andy the Actuary]

If the auditor is culpable, then they should direct [in writing] since they would be looked to for compensation if all blows up. Else, if the client is culpable [e.g., they didn't get information to the client timely], then they will have to deal with.

Even if you file under a corrections program, wouldn't the client still be better off submitting the filing ASAP?

Our government at unwork may help here because the client was unable to make contact with the government in advance to see how best to handle when they are aware the filing may be submitted late.

[Lou S.]

I think the IRS imposes penaltys back to the original filing date which would be around $1,900 while the DFVC for a large plan one year is $1,000. Either way if the auditor is at fault for the late report I'd be looking at them to pay the IRS fee.

Though as Andy points out, you mey get lucky and be able to use the govenment shutdown to your advantage here though that's a bit dicey.

[khn]

Thanks to both of you. I hadn't thought about the possibility of using the government shutdown as a plea for leniency, although it's probably grasping at straws.

They have filed it as of this morning but I will definitely advise them to go after the auditor for any financial penalties.

[GMK]

This, from the benefitslink.com newletter a few days ago:

http://www.fragassoadvisors.com/blogs/2013/10/10/the-government-maybe-shutdown-but-your-form-5500-is-still-due/

seems to think the 5500 needed to be in on time.

To top it off, "I'm late because of the government shut down" doesn't work with my wife either.