From the AICPA Employee Benefit Audit Quality Center (October 13th, 2010)
In a letter dated October 13, 2010, the DOL has denied the AICPA’s request for an automatic extension of two months for filing 2009 Forms 5500/5500-SF . In addition, the AICPA asked that plans be granted relief from late filing penalties if a plan administrator acts diligently and in good faith but is unable to meet its filing deadline.
DOL also reminded filers of its Delinquent Filer Voluntary Compliance Program (DFVCP), which is designed to give delinquent plan administrators a way to avoid potentially higher late filing civil penalty assessments, as well as the DOL’s normal reasonable cause procedures whereby requests for reductions or waivers of late filing penalties would be handled on a case-by-case basis. In addition, IRS indicated that while IRS late filing penalties are considered on a case-by-case basis taking into account all relevant facts and circumstances, the IRS expects to consider EFAST 2 transition issues in determining whether a delay or failure relating to the 2009 filing was due to reasonable cause.