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Release Date: 10/07/2002
Release Number: 02-21
Contact Name: Sharon Morrissey
Phone Number: 202.693.8668
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Washington, DC - The U.S. Department of Labor’s
Pension and Welfare Benefits Administration (EBSA) and Internal Revenue
Service today announced a joint project to ensure that all employee
benefit plans have complied with their annual return/report (Form 5500)
filing obligations under the Employee Retirement Income Security Act (ERISA)
and the Internal Revenue Code. Failure to do so may result in significant
monetary penalties. |
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Under the project, the agencies are conducting research
of various databases to identify potential non-filers. Beginning in
December 2002, the agencies will mail letters of inquiry to those
identified as potential non-filers. |
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ERISA requires most private-sector plans to file the
Form 5500 annually. Plan administrators who fail or refuse to comply with
ERISA’s requirement may face civil penalties of up to $1,100 per day for
each report. Likewise, the IRS may assess penalties of $25 per day (up to
$15,000) for failure to timely file returns for certain pension and profit
sharing plans. |
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The agencies, however, reminded delinquent filers of
the availability of a program to assist plan administrators in filing
delinquent reports. The Delinquent Filer Voluntary Compliance Program was
established in April 1995 to encourage plan administrators to file overdue
annual reports by paying reduced penalties. The program has been updated
to substantially reduce the penalty amounts for delinquent Form 5500
reports in order to make it easier to participate in the program. In
addition, the IRS stated that it will not assess penalties on delinquent
filers who satisfy the requirements of the DFVC Program. Plan
administrators who have been notified by EBSA about a delinquent filing
are not eligible to participate in the program. |
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For more information about the project, contact EBSA at
202.693.8360 (this is not a toll-free number) or the IRS customer service
number at 1.877.829.5500. Information about the DFVC Program is available
from EBSA on its Web site at www.dol.gov/ebsa or by calling the number
above. Questions about the Form 5500 should be directed to EBSA’s Toll-Free
Employee & Employer Hotline number at 1.866.275.7922. Copies of
previous filings can be requested by writing to: U.S. Department of Labor,
Public Disclosure Office, 200 Constitution Avenue, NW, Room N-1513,
Washington, DC 20210. |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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