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Stash026

Schedule H Question

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The auditors are making a change to the beginning balance for 2016 which they deem to be negligible, and are therefore not issuing an amended '15 audit (they are simply putting a footnote in their report).  In theory this would mean that the beginning balance will be different then the '15 ending balance.  Is there a way to note why somewhere that I'm missing, or will the IRS simply pick it up from the attached report?

Thanks in advance!

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In their note, it should reference something about a reconciling item to the 5500. Your beginning balances shouldn't change.

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This reconciling note in the auditor's report can be used for any difference.  It is under used in my mind.  While most of my 5500s and the auditor's reports agree there is no rule that says they have to agree.  The auditor merely has to put a reconciling note in their report detailing what and why the difference.  I see them 1 or 2 times a year. 

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