It's almost certain that 2009 will be full of challenges starting with a local, state, and Federal government that will look in every corner for ways to pay for its spending. Okay, so that's not the news you wanted to hear but let's try to keep our wits about us, shall we?

I had the fortune (dare I call it that?) to visit with representatives from the Internal Revenue Service and the Department of Labor this past November. They were a good-natured bunch and we discussed some upcoming issues that affect many of us. Here's the deal...

The filing of Form 5500 and the related Schedules have become very important to these agencies. Most notable is their new position on penalties for late filers and non-filers. The Employee Benefits Security Administration (EBSA), where the Form 5500 is sent, works with the IRS to identify and target both late filers and non-filers. The penalties that are being assessed are as follows:

*Late filers: $50 per day, per Plan, for the period that was not timely filed.

*Non-filers: $300 per day, per Plan, to a maximum of $30,000 per year per Plan until a filing is submitted.

Additionally, incorrect filings can also be assessed penalties, particularly if it is deemed that there has been gross misrepresentation and/or missing data or schedules.

Another area of concern is the transparency and full disclosure of fees paid by the Benefit Plan. Whether considered hard or soft dollars, these fees must be disclosed on Schedule A or Schedule C. The IRS/DOL has taken the position that the Plan's sponsors and administrators must know who is getting paid how much for the operation of the Plan.

The required electronic filing of Form 5500 has been pushed out one more year to Plans that have year ends in 2009 with filings due in 2010. Should a situation arise where a delinquent filer is identified, the EBSA has a Delinquent Filer Voluntary Compliance Program (DFVCP) that is designed to encourage Plan administrators to file overdue 5500s by paying reduced penalties.

For more detailed information on this program contact the EBSA office at 866-444-3272 or online at www.dol.gov/ebsa.

Remember, a Form 5500 filing is required for any pension plan (there are exceptions - check with your broker or administrator) or a health insurance plan if you have more than 100 employees. Ignorance of the regulations will not be accepted as an excuse. This is just one of the many areas the IRS/DOL has started to focus on. I will provide more insight on other areas throughout this year.

With clear heads and sound logic we will make the most out of 2009 together. Happiest and healthiest of New Years to you!