When we were kids, we were trained that late assignments should be turned in as soon as possible. The problem is that the Department of Labor (DOL) and Internal Revenue Service (IRS) is less forgiving than our teachers when it comes to a late Form 5500.
A late Form 5500 that is filed without a contemporaneous filing with the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP) will result in a penalty from the DOL and/or IRS. Paying a smaller penalty amount through the DFVCP is far more advantageous than a five or six-digit penalty from the government.
Just a thought when you’re late.
