In order to avoid a potential penalty for filing delinquent tax returns, filers must opt into the Delinquent Filer Voluntary Compliance Program. This program is offered by the Employee Benefits Security Administration (EBSA), an agency within the U.S. Department of Labor.
Filers may qualify for the DFVC if they have unpaid taxes for three to five years. Participants must be aware of the DFVC program’s terms and conditions, including how to file and how much they must pay.
While it’s true that penalties will be assessed, DOL’s Delinquent Filer Voluntary Compliance (DFVCP) program can help employers avoid the consequences of being penalized for late filing. This program will allow plan administrators who have been past due on filing their Form 5500 returns to apply for penalty forgiveness.
This program is relatively easy to use and can help avoid costly penalties. However, plan administrators must apply before they can qualify, and if they do, they must provide proper notice to the DOL. If your plan falls under Title 1 ERISA, you are likely eligible for DFVCP.
The DOL’s DFCVP was established to help plan administrators avoid costly penalties for filing their Form 5500 annual reports late. Filers who fall into the program can avoid higher civil penalties by paying a reduced penalty. Employers must be aware that they are eligible for this program if they’ve already failed to file their Form 5500 annual report on time. The DOL can assess penalties of up to $2140 per day if the filing is late.
The DOL has updated its Delinquent Filer Voluntary Compliance Program in 2002. Employers can choose this program to report their delinquent filings to the DOL and avoid the penalties. The DFVC Program also helps employers with retirement plans that have fewer than 100 participants. So, if you’re a plan administrator and need to file your Form 5500, apply for the DFVC Program today!
Those who have fallen behind on Form 5500 filing can still redeem themselves and save themselves from civil penalties by voluntarily correcting errors. The DOL’s Delinquent Filer Voluntary Compliance Program is an ideal solution for employers who fall behind on their Form 5500.
The program allows employers to pay a reduced penalty to the DOL and avoid a civil penalty. And, for employers who fall behind in filing Form 5500, the IRS usually waives the late-filing penalty if they self-correct their mistakes.
The form 5500-EZ instructions are the same for every year. You’ll have to provide the employer’s address, the employee’s name, and their deferral or rollover amounts. Once you’ve collected all the required information, you’ll fill out the ‘Employer’ section, which is a simple matter.
The instructions also detail how to complete the other sections of the form. There’s also a special section for late filers, and we’ll cover that in a moment.
Once you’ve completed these instructions, you’ll be ready to file your plan’s annual report. To begin, you’ll want to make sure that all of the information on your form is correct. The DOL has the right to check whether your plan is compliant with federal law.
Make sure that all of your information is accurate, as incorrect information can lead to an employee plan compliance check by the DOL. Make sure to answer “Plan Participants” if your employees have any balances in their accounts.
You can find the IRS’s form 5500-EZ instructions on the IRS’s website. However, if you’re unsure, or need more information, you should contact a tax professional. They can help you fill out the form in the most efficient way possible. So, if you’re ready to start filling out the IRS Form 5500-EZ, you’ll be ready to send it off.