Article Abstract:
Senator Robert Packwood of the Senate Finance Committee is one of the advocates for a flat tax. This proposal is being opposed by Representative Bill Archer of the House Ways and Means Committee. A flat tax is characterized by a single tax lower than the current rate, minimal deductions, a limit to which low-income earners are not taxed and no tax on savings. Pension planners are not optimistic about it since employers will not be able to deduct contributions to qualified plans.
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Article Abstract:
The Dept. of Labor has effected the Delinquent Filer Voluntary Compliance Program (DFVC) last Apr. 27, 1995. Delinquent filers are allowed to comply with the reporting requirements of the Employee Retirement Income Security Act of 1974. DFVC is an easy program for filers to comply and is flexible. However, employers seeking amnesty under DFVC may be penalized by the IRS. Assessed penalties are arbitrary since these depend upon the type of forms filed by the plan sponsor.
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Article Abstract:
Plan providers delinquent in filing annual employee benefit reports are provided the Delinquent Filer Voluntary Compliance (DFVC) program with slightly higher fines. DFVC took effect in Apr. 1995. Late filers should file 5500 (or 5500C R) forms with the IRS with the bold letters DFVC written in red on the first page with a check attached. Substantial amounts can be saved by voluntary compliance. However, DFVC participants are not protected from penalties of the IRS.
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