The Delinquent Filer Voluntary Compliance Program (DFVCP) allows plan administrators to pay a reduced civil penalty if the required Form 5500 is filed under the Program before the Department of Labor (DOL) notifies the administrator of the failure to file in a timely manner.

The applicable penalty amount depends on the size of the plan and all penalties are calculated beginning on the day after the date the filing was due, without regard to any extensions.  A small plan, one with fewer than 100 participants, may be penalized $10 per day for each day the Form 5500 is filed after the due date not to exceed $750.  If the DFVCP submission relates to more than one delinquent filing for the same plan, the maximum penalty amount for a small plan is $750 for each Form 5500, not to exceed $1,500 per plan. A large plan, one with 100 or more participants, may be penalized may be penalized $10 per day for each day the Form 5500 is filed after the due date not to exceed $2,000.   If the DFVCP submission relates to more than one delinquent filing for the same plan, the maximum penalty amount for a large plan is $2,000 for each Form 5500, not to exceed $4,000 per plan.

If you have concerns about the timely filing of your Form 5500, please contact a Nyhart consultant.

This article was last updated on October 14, 2011