DOL Emailed Us About Missing 5500

[austin3515]

We were the filing signer for one of our former clients that we no longer do any work for. So they signed the paper form and we did the signature. The DOL just emailed us saying they compared their records between years and found no filing for 2013.

Anyway, this was a dramatic change from the standard letter from the IRS so I decided to share. Not sure what it means but I am concerned that technically the DFVC program might not be available to this former client.

If they decide to take us back we will try the DFVC program of course.

[Belgarath]

Did they say they were imposing the penalty, or just that they didn't receive the form? If the latter, shouldn't be any reason that DFVC won't be allowed.

Do you have the filing acknowledgement number as "proof" that it was filed timely?

[austin3515]

In this case no form was ever filed (they left us!). No mention of penatlies but I thought one of the preconditions for DFVC was that the DOL has not yet contacted you.

I thought that was why it was always the IRS who contacted you.

[Belgarath]

Ah.

I agree that one of the preconditions is that the DOL hasn't notified you that they are imposing the penalty. However, if the DOL has started doing the initial notifications rather than the IRS, it may be the initial notice from the DOL isn't imposing the penalty - hence my question.

If I were in client's shoes, and if they have no proof of filing, I'd rehire you, or get their new TPA, to get it filed through DFVCP immediately. (since they had the unmitigated gall to leave you, make 'em pay if they want you to file it!!)

[austin3515]

And we would take them back if we get back fees and paid in advance

[ESOP Guy]

Are you sure they are legit? I have never heard of either the DOL nor IRS using e-mail to inform people of missing forms.

That sounds more like a scam that is trying to get information. The only odd part would be the information is on the DOL website so why use a scam to get it?

I don't get that many IRS or DOL notices but like I said I have never heard of e-mail being the method.

[austin3515]

a) It was a letter from Scot Albert (what are the odds that a crook knows that is who it ought to be from); b) we already know they did not file; c) the domain is accurate; d) they are not asking for anything at all that would be considered sensitive; e) it was addressed to the person in our office whose email address we used to do the signing. That is an awful lot of coincidences.

They just want to know why it wasn't filed, etc. No request for a credit card payment or a SS#.

Plus everything was grammatically correct . But to your point, I did leave a voicemail for the contact.

[Lou S.]

Just curious, do you know for sure because you talked to the client or strongly suspect they have not filed because they are generally flaky?

Why would you contact the DOL if they are not your client?

[austin3515]

I didn't tell the DOL which client I was talking about. It was a general question. And let's just say I know they haven't filed.

[PAL]

Plan Administrators are only eligible to use DFVCP if they "have not been notified in writing by the Department of a failure to file a timely annual report under Title I of ERISA" so I'm thinking that they would not be eligible to use DVFCP. This is a big change from having the IRS send that first notice!

Can you tell us when their 2013 Form 5500 was due as well as the date of the DOL letter/e-mail? I'm interested in seeing how long they waited to send the notice.

[traveler]

In response to the question of how fast is DOL sending out notices of missing 5500's, I have a client that late last month (June 2015) receive a second notice(sent via UPS nex day air) from the DOL Division of Reporting Compliance asking about a missing 2013 Form 5500 for a calender year plan.

The client never received the first notice, and the DOL has yet to tell us how it was sent.

Does anyone know if the first notice is usually sent via email?

Any experiences - good or bad - with responding to these notices via email? I am accustomed to working with the IRS which is very reluctant to use email, so I wondered what the groups' experience has been with the DOL and email.

[Kevin C]

If the former client comes back, why not ask the DOL if they qualify for DFVCP? Part of the reason I suggest you ask is because they can also help with corrections outside of the established programs if they don't qualify for DFVCP.

[R. Butler]

We received a failure to file notice on a 2013 form 5500-SF from the IRS. We had had an incorrect EIN that raised the question.

A couple of things with this thread though:

1. Unless I am missing somehting in the facts I don't see that the plan adminstrator has been notified. Supposedly the DOL e-mailed an authorized alternate e-signer. That is quite different from notifiying the plan administrator.

2. Something still seems strange though. Why would the DOL contact a prior year's authorized alternate e-signer about a filing not made?

[austin3515]

2. Something still seems strange though. Why would the DOL contact a prior year's authorized alternate e-signer about a filing not made.

My guess is "because it's really easy."

Edit:

And also "because it's really effective.."

[R. Butler]

Is it effective? They didn't notify the plan administrator. You are no longer their service provider; you aren't really under any obligation to notify the plan adminstrator of the missed filing.

In this case it may work out for the plan sponsor, but if you chose not to notify the plan adminstrator it could be months longer before they learned of the missed filing.

[austin3515]

It wasn't effective in my particular situation, but I assume they will find that overall they got a lot of people to file their 5500's as a result of this email blast. Would a 30% compliance rate be classified as effective, in light of the minimal effort involved? My guess is "yes." Say they sent this blanket email to 500 sponsors and 150 filed as a result. I think that would make them happy.

[traveler]

FYI, per a discussion that I just had with the Department of Labor, I was told that the DOL's first "notice" of a missing form 5500 is sent via email to the address used for the most recent filing. If there is no response, the DOL then sends out a letter via UPS next-day-air to the Plan Sponsor's address.

I also got the impression from speaking with the representative that DFVCP was available if the 5500 is filed on or before the deadline for responding to the snail mail letter.

If the 5500 is not filed by the deadline in the snail mail letter, expect to receive a Notice of Intent to Assess Penalty, at which point DFVCP is no longer available.