5500 filed late, not under DFVCP, then employer received CP283 penalty notice and paid it

We got a question on a situation where this occurred. The employer wants to know if they can get a refund. Large plan 5500.

I've never even had a discussion with anyone who has seen this specific situation. 

First, in a situation where a form has been filed late, but not under DFVCP, I've seen a good deal of discussion where the recommendation is to file an amended form ASAP, checking the box that it is being filed under DFVCP, and filing ASAP under DFVCP. Folks appear to have had success with this, even if a CP283 has been sent. Agree/disagree? But now the question is whether that option is still available if the employer already paid the CP283 penalty? And if so, how does the employer go about requesting a refund? Sending what we used to call the "tear stained " letter? If so, I think they need to engage the services of someone with direct negotiating experience in such situations. 

Appreciate any thoughts. 

2 hours ago, Belgarath said:

We got a question on a situation where this occurred. The employer wants to know if they can get a refund. Large plan 5500.

I've never even had a discussion with anyone who has seen this specific situation. 

First, in a situation where a form has been filed late, but not under DFVCP, I've seen a good deal of discussion where the recommendation is to file an amended form ASAP, checking the box that it is being filed under DFVCP, and filing ASAP under DFVCP. Folks appear to have had success with this, even if a CP283 has been sent. Agree/disagree? But now the question is whether that option is still available if the employer already paid the CP283 penalty? And if so, how does the employer go about requesting a refund? Sending what we used to call the "tear stained " letter? If so, I think they need to engage the services of someone with direct negotiating experience in such situations. 

Appreciate any thoughts. 

I had a client do this years ago.  They paid the penalty, then contacted us a week or two later.  IRS said no in that instance.  Short version was something like:  

1. you filed late

2. we issued a penalty

3. you had two options, pay the penalty or pay user fee for correction program

4. You paid the penalty.  You cant correct via program because there is no longer anything to correct.  We will not issue a refund because the penalty was legit.

In my client's case there was only a small difference in penalty and DFVCP user fee (less than $1,000), so the client dropped it after the IRS said no.  

Thanks for the response. 

We had a similar situation last year, filed the original  with letter of Reasonable Cause.  IRS came back with $4500 penalty letter, client, not knowing what this was for,saved for accountant l, who not knowing what this was, paid the bill.  Client then gets IRS abatement.  Wants to know if he can get the money back.  I told him since he already paid, IRS considers the matter closed.