Compliance check not responded to

DB plan received an IRS compliance check for non filing of 5500. They didn't respond in time  and now received a notice that that since they did not hear from the sponsor they are refering the case for examinstion consideration. And you will be notified if your return is selected for examination. Could the sponsor still file now with the DFVCP? And would this help stop further action?

Thank you for any insights and help 

For clarity, can we assume that this is for a 5500 or 5500-SF?  (Form 5500-EZs have to use the IRS late filer program.)

The DFVCP Q&As https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/dfvcp.pdf say:

Q2. Who is eligible to participate in the DFVCP?
Plan administrators are eligible to pay reduced civil penalties under the program if the required
filings under the DFVCP are 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)

Note that the DFVCP is available unless the DOL has sent the plan a notice of a failure to file.  If the information is available to make a complete filing, then it is worth filing under the DFVCP asap to get ahead of getting an official notice from the IRS.  However this develops, one thing is that is certain is the plan ultimately will have to file the 5500 for the that is late.

Thank you Paul I. Much appreciated. Yes its a 5500-SF. Can filing with the DFVCP, help prevent an examination? And if the plan starts the process by ,for now, at least paying the DFVCP fee on line ( and then work on getting the complete information to actually file) help to show that the plan is complying and hopefuly this can stop an examination?

Note that Q3 in the DOL FAQs, the process is first file the form and second pay the penalty.

Completing the filing is no guarantee that the IRS will give a complete pass on an examination, but they do take into consideration that the form was filed and the plan is acting in good faith.