DFVCP Available for One Year If DOL Notice Received for Another Year

It is not clear to me whether DFVCP becomes unavailable for all years once a DOL notice is received for any year.  The FAQs provide that the DFVCP filing must be made "prior to the date on which the administrator is notified in writing by the Department of Labor (Department) of a failure to file a timely annual report under Title I of the Employee Retirement Security Act of 1974 (ERISA)."  But does that mean notice of a failure for one year would preclude a DFVCP filing for another year for which notice of a failure to file has not been received?  Has anyone had any experience with this issue?

Well if it were me, I would quickly file under DFVC and tell them so. My view of the matter is that they want people to comply and file the 5500's.  They are not out to punish those who cooperate.  No promises but I can't see how it hurts.  I think technically it may not be allowed because one of the conditions is that th DOL has not reached out to you, but I just don't think they would reject the DFVC on that account.

On 5/2/2024 at 4:04 PM, austin3515 said:

Well if it were me, I would quickly file under DFVC and tell them so. My view of the matter is that they want people to comply and file the 5500's.  They are not out to punish those who cooperate.  No promises but I can't see how it hurts.  I think technically it may not be allowed because one of the conditions is that th DOL has not reached out to you, but I just don't think they would reject the DFVC on that account.

I would also quickly file under DFVCP.  I agree that the goal is for people to comply, not to punish as many people as possible.,

Personally, I think it is allowed unless they have contacted you for that plan year since each return is limited to a specific plan year.

Completely but definitely worth a shot to file all of them under DFVC even the one for which you did get the notice.  I assume that the DOL notice received did not include any penalties anyway.  I think the only scenario where rejection, etc. would be relevant would be an attempt to get them to waive any penalties assessed.

Also, the DOL has stated that the email inquiries the DOL is sending out do NOT prevent you from filing DFVCP.  More proof that the goal is to get people to comply, not hammer them with insane penalties.