Failure to Timely File 5500 - Relief Under DFVCP

A Plan failed to timely file Form 5500-SF for Plan Years 2018 and 2019 (12-31 Plan Year Ended) until July 2021.  Upon filing the returns, the Plan Sponsor receives notice from the IRS of penalties for failing to file for those years.

My question is related to relief from penalties under DOL.  I know that the Plan is not yet disqualified from relief under DFVCP, however what if the delinquent returns have already been filed before applying for relief under DFVCP?  Should amended returns be refiled showing the box labeled “DFVC program” located in Part I, Line D of the Form 5500-SF checked? 

In this instance, without yet filing under DFVC, your client is likely to receive a love letter from IRS; possibly an invoice as well.

I would be inclined to chalk up the $750 as and file as an "amended return" and check the box DFVC ASAP.

22 minutes ago, thepensionmaven said:

I would be inclined to chalk up the $750 as and file as an "amended return"

$1,500 for two or more plan years, no?