A required minimum distribution was not timely distributed from a 401k plan for a plan participant. The plan sponsor filed VCP requesting a waiver of the excise tax for the participant. If IRS does not respond before the participant has to file his/her taxes, what should he/she do? From what I've read, it seems that if the sponsor files VCP and pays the filing fee, the excise tax is waived. Can anyone confirm this?

Clearly the MRD would be taxable in the year distributed, so include that on the 1040. But don't file the excise tax return until you hear on VCP. Not likely that your VCP applicaiton will be unsuccessful--but, if it is, then you likely will have a reasonable excuse for not timely filing the Form 5329 for the 2009 MRD, but probably not for the others (which are way late, anyway).