What is the daily penalty for each form under the Delinquent Filer Voluntary Compliance Program?

The Delinquent Filer Voluntary Compliance Program (DFVCP) provides a mechanism for plan administrators to correct late filings of Form 5500 without incurring a significant financial burden. The daily penalty for each form that is late is established at a rate of $10 per day. This penalty encourages timely compliance with filing requirements while providing a more manageable option for plan administrators who may struggle with late filings.

Understanding the sanctions in place helps administrators stay compliant and avoid more severe penalties that can arise from failing to file altogether. The program also illustrates how the Department of Labor strives to balance the enforcement of regulatory filing requirements with the need for voluntary compliance. By providing a structured approach to managing late filings, the DFVCP allows administrators to correct their errors while minimizing financial impacts.