DFVCP with one missed filing

2020 5500 will be ready to timely file since the plan no longer requires an audit, but 2019 5500 with its required audit will still be unavailable.  Should we file the 2020 5500 or will this make the DOL and IRS more likely to ask after the 2019? Prior years were filed timely; so the DOL has to know the plan is out here.

If you don't file the 2020 return you'll double your problems by having two years that didn't have timely returns filed.  Best to file the 2020 return now imo and minimize the issues.

Out of curiosity, why isn't the 2019 form filed yet?  Is it the sponsor's fault?  Or the auditor's?

"They" are saying the auditors.  Doesn't make sense to me either.

FormsRstillmylife, my guess is you are more likely to get an inquiry regarding 2019 if you file the 2020. Right now the 2019 seems eligible for DFVCP, and you don't want to blow that. There is no perfect answer, here, but given the very large penalties that apply outside of DFVCP, I would make sure that the employer is aware of the risks and that its legal counsel quickly but thoroughly investigates the problem with the accounting firm, before deciding what to do.

When will the audit be done?

I can tell you for a fact if you file the 2020 it is just a matter of time before you get a "where is the 2019" letter.   I would delay the 2020 filing to the actual due date and do your best to convince the client to get that 2019 filed by no later than that day also. 

I would file both late.  Charge the auditor the DFVCP fees for both years.

2 minutes ago, BG5150 said:

I would file both late.  Charge the auditor the DFVCP fees for both years.

If they can't get the audit done by the time the 2020 is due this is a valid strategy in my mind.   The DFVCP fee has the same cap regardless of the number of forms filed late.  

40 minutes ago, ESOP Guy said:

The DFVCP fee has the same cap regardless of the number of forms filed late.  

Kinda.  For large plan, fee caps at $2,000 for one plan year, and $4,000 for two or more plan years.

16 hours ago, BG5150 said:

Kinda.  For large plan, fee caps at $2,000 for one plan year, and $4,000 for two or more plan years.

Show how often I file DFVCPs!