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Also @RatherBeGolfing, cost is not a factor (to some extent). They realize this is going to be extremely expensive and was built into the sale negotiations. I believe they have budgeted for about $500k in expenses (and are willing to go higher if needed). On the other hand, i think we we start exceeding that amount by too much, than yes, cost then would become a factor.

Thanks everyone. @RatherBeGolfing, to answer you question, I think it is bits and pieces of everything you listed. I think there is some partial trust information, payroll records, etc., but not all the records (we have not personally been out to the client's physical location, so I cant speak for certain). It appears as though they just did not keep good records prior to 2016. They worked with a local payroll provider for a while (and they are in Alaska) and (I think), may have been doing a lot of their own plan administration (rather than using a TPA). Even when they worked with a TPA/REcordkeeper, the TPA "fired" them because they were not responsive to their request for information to complete annual testing, etc. (they were under a different owner, which has since changed and is why they are now looking to address all these issues). Unfortunately it does seem like a lot of the reason why information is not available is because the local payroll provider is no longer around (and hasn't been for years) and our client failed to retain any of their own records.

Thanks @Bill Presson. Unfortunately we are the ERISA attorneys. We originally proposed filing an incomplete report with explanation. However, after discussions with a help desk agent at the DOL (take that for what it is worth), they informed us that the only options were to file the auditor's report (completed) or undue the plan as the plan could never be in compliance since an auditors opinion couldn't be produced for earlier years, therefore there was no way to substantiate any numbers in any subsequent 5500s.

Hi - We have a client that has failed to file Forms 5500 for several years, and for all years in question, were subject to audit requirement. Unfortunately, prior to around 2016, information necessary for the auditors to do a complete audit is not available. Therefore, we are unable to get the auditors to sign off on those audit reports. Are there any recommendations on how to proceed? We obviously want to file under DFVCP and pay the late filer penalty, but will not be able to do so without the auditor's report. Any suggestions on whether we should not file the 5500s at all (seems like a bad idea) file without auditor's report (again, seems like a not so great idea, but better than not filing at all) file with an incomplete report, with explanation of the situation Thanks,