Late filing of form 5500

[Guest JBeck]

Is there any information on the standards the DOL uses to determine whether to waive the penalties associated with the late filing of form 5500s? The DOL did not appear to be concerned with the late filings of form 5500s. Can anyone explain why the activity? The DOL is assessing a client a penalty of $50 a day or $15,000. Can this be negotiated and how do I go about doing so?

[thepensionmaven]

I thought I had exhausted this topic ad infinitum prior to the October 15th deadline for calendar year 5500s.

Please see those previous threads for any other help.

In those threads, I believe it was determined that as long as the client got the 5500s in with a letter explaining why the forms were late (it was advised to blame it on software problems that were beyond control of the plan sponsor), the DOL would NOT assess any penalties.

Basically, I believe the thought was that they realize they messed up, would not allow an extended extension because there is not provision in the law for it. The law calls for penalties if a return is filed after the 90 days after the 7th month UNLESS you can find "reasonable cause."

That's where the letter comes in. "Justifiable cause" is putting the blame on the software vendors, ie outside the control of the plan sponsor.

I am surprised to hear that DOL is assessing penalties. Maybe upon appeal with the letter (which was supposed to be sent with the 5500s), you will be OK.

Do you need the letter???

[Guest JBeck]

To clarify, this was a late 1997 filing, so it is not really a software problem.

[Guest Paul]

Why didn't you take advantaage of volunitary program the DOL has that you pay a reduced penalty of only $ 5,000?