DFVCP participants benefit from a cap on late filing penalties. Designed to encourage reporting compliance and support plan administrators to get back on track after multiple years of late filing, the DOL’s applicable penalty rates are as follows:
Single late annual report for small plans – $10 per day, not to exceed $750
Single late annual report for large plans – $10 per day, not to exceed $2,000
Multi-year late annual reports on small plans – $10 per day, not to exceed $1,500
Multi-year late annual reports on large plans – $10 per day, not to exceed $4,000
The IRS will generally waive late filing penalties for Form 5500 Series filers who satisfy the DFVCP requirements.