Late Form 5330 filing for ADP excise tax

[Guest TaxedToDeath]

If a plan failed the ADP test for the 2012 plan year, did not distribute the excess contributions until after the 3/15/2013 deadline, and then did not file Form 5330 to pay the 10% excise tax by the deadline of the last day of the 15th month following the close of the 2012 plan year, how is this corrected? Would the plan sponsor file the Form 5330 and pay the excise tax even though it is past the deadline? (Assume the IRS would assess some sort of penalty/interest for the late filing of the Form 5330....) Is there some other correction that would be required due to the Form 5330 not being filed on time?

[ESOP Guy]

File the form and pay the excise tax. They will get a bill for a late filing and late payment penalty and interest. If you write a letter to the IRS asking them to waive the penalty and give a good reason and it really is the first time they might waive the penalty. They will never waive the interest. I used to work for the IRS back in the '80s and they are firm that you had use of the money so you owe the interest. I have had pretty good lucky with the penalty waivers but it isn't 100%.