User talk:April15
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Hi Fred. I've only audited a few pension plans, and I try to stay away from them as the auditors can be fined (for missing stuff) by the IRS or DOL also.
I do believe that the DOL can put a lien or garnashee your father's personal assets just as the IRS can. I am not quite sure about dissolving the company. I can tell you that the DOL does have does have something called the Delinquent Filer's Voluntary Correction program (DFVC) that will allow you to file the 5500 late and pay a substantially lowered penalty. I have heard that some filers have had penalties lowered from $10,000 to around $1500/per each late filing.
I would investigate the DFVC program because I did work on a pension audit (but substantially larger than your parents)that was previously audited and fined by the DOL. The DOL guys were particularly detailed/picky and the penalties were about $170k if I remember correctly.
Good luck, I wish I could provide you with some more clear cut help.
PeteHoustonp 16:53, 4 September 2008 (CDT)
Also, from the IRS website
If your parents were 5500EZ filers, see below:
Only the IRS may assess penalties on Form 5500-EZ. The Employee Benefits Security Administration does not have any jurisdiction over Form 5500-EZ, cannot assess penalties against delinquent Form 5500-EZ filings, and therefore cannot include them in their DFVC Program. The IRS, however, will consider any “reasonable cause” statement submitted explaining why the return is late.
PeteHoustonp 16:56, 4 September 2008 (CDT)
