As reported in our blog at the end of July, the DOL has updated its online payment process system for use with the Delinquent Filer Voluntary Compliance Program (DFVCP). We contacted the DOL last week and wanted to provide three key details that were shared with us.
- The DFVC Penalty payment is to be paid as soon as possible after the Form 5500 has been e-filed. If it has not been paid and the DOL, during their routine reviews, discovers no payment received, the penalty they will impose is a $135 per-day late fee with no cap.
For instance, if the filing was 365 days late when the DFVC Form 5500 was e-filed, however, the $2,000 penalty payment was not submitted, and the DOL catches that, the new penalty imposed is now: $49,275.
- Paper checks may still be submitted for the time being. The DOL has said that checks will not be processed starting on September 30; however, once the Federal Register signs off on the new DFVC payment system, the checks will no longer be accepted 30 days after this effective date by the Federal Register.
3. For any questions on using the online payment system, best to call the following phone number: 202-693-8409. Likely you will leave a message but the average turn around time is 3 hours.
If the Federal Register signs off on August 12th, checks will not be allowed after September 12th.
Since the date is a moving target, the best approach is to pay electronically going forward.
In addition, we have been advised that checks sent via the USPS to the DOL’s DFVCP mailbox in Portland, OR, have been stolen. The DOL will still expect payment and will not take this as an excuse.
Any questions or need additional help? Please contact Wrangle’s DFVC Team at DFVC@wrangle5500.com for any questions on the DFVC process.