Penalty for late filing

[Guest Ray Williams]

We are now starting to send out 5500s to Plan Sponsors who are not required to file SARs.I usually use one of two form letters, one for forms to be filed without 5558 extensions and one for forms with an extension. In the letter for froms with an extension, I warn the Plan Sponsor that failure to make the extended deadline can expose it to penalties back to the original filing deadline.

Under the automatic extension for 1999 5500s, would the penalty for failing to file by October 16, 2000 be computed from October 16, or from the original filing date, even though the forms were not available on that earlier date? The press release merely extended the deadline, not the filing date, therefore it would appear that the DOL or IRS could impose penalties back to the original filing date. Any comments?

[Guest Emiliano]

The late penalty would be computed back to the original due date (7/31). This information is from DOL (202) 218-8770.