Evolution of VFC (Posted September 15, 2003) Technical Tip 33: The following question and answer are from the DOL Q&A Session at the 2000 ASPPA Annual Conference: Are there any plans to expand the VFC program? Suppose a sponsor discovers one of the 13 violation types, corrects it per the VFC, but fails to submit the matter to the DOL. Upon a subsequent DOL audit, what likely action would be taken by the DOL auditor? DOL Response: The PWBA initially took a conservative approach and limited the eligible transactions to those where the nature of the transaction and the required correction could be described accurately and corrected without consultation with the PWBA. We have been urged by practitioners to add other transactions. We have seen how the IRS’s correction programs have successfully evolved with the input of practitioners, and we would like to improve our program also. The VFC program could cover additional transactions based on our original criteria and our enforcement priorities. If a sponsor corrects a violation currently covered under the VFC program but does not submit the correction to DOL, and later becomes the subject of an investigation, the DOL will not be precluded from taking further action if total corrective action has not been taken. Caveat: The answer was drafted by the program moderators, including Fred Reish, based on their understandings of discussions with four senior officials of the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor. As a result, it does not represent a formal or binding position statement by the EBSA. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.