IRS & DOL Correction Programs
The IRS Employee Plans Compliance Resolution System (EPCRS) has outlined methods on how to correct mistakes and avoid the consequences of plan disqualification.
The DOL offers a Delinquent Filer Voluntary Compliance Program (DFVCP) to assist the plan sponsor complete any and all Form 5500’s that were not filed on time by coming forward on a voluntary.
Voluntary Fiduciary Correction Program (VFCP) provided by DOL allows a plan sponsor to calculate earnings on contributions that were deposited late.
Plan Correction
We can help in the correction by fixing the problem as well as submitting your plan under either of the programs depending on the correction required.
Plan Audit
The main purpose of these programs is that IRS & DOL want you to correct any mistakes that you are aware of before they find it during a plan audit.
Self-Compliance
Generally IRS and DOL prefer having a plan sponsor follow these self-compliance methods as it saves them a lot of time and resources if they had to physically audit a plan.