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IRS does not have a specific remedy for nonfiling. However, they will not impose the taxability penalty, per the IRS as follows, from the Internal Revenue Bulletin (IRB) at https://www.irs.gov/irb/2009-24_IRB/ar11.html:
"A-13. Section 101(j) does not contain a provision for correcting an inadvertent failure to satisfy the notice and consent requirements of § 101(j)(4). The Service will not, however, challenge the applicability of an exception under § 101(j)(2) based on an inadvertent failure to satisfy the notice and consent requirements if the following conditions are met: (1) the applicable policyholder made a good faith effort to satisfy those requirements, such as by maintaining a formal system for providing notice and securing consents from new employees; (2) the failure to satisfy the requirements was inadvertent; and (3) the failure to obtain the requisite notice and consent was discovered and corrected no later than the due date of the tax return for the taxable year of the applicable policyholder in which the employer-owned life insurance contract was issued. Because § 101(j)(4)(B) requires that the employee’s consent be written, failure to obtain such consent cannot be corrected after the insured employee has died."
Since yo0u have the consents, but simply failed to file, the remedy is filing the form 8925 by the extended due date of the return.
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