Error on prior year Schedule B - Procedure under EFAST

[mwyatt]

In review of current case, discovered that there was an error on the 1999 Schedule B (interest on Normal Cost didn't stick when entered last year, so charges were understated and credit balance was overstated). I know, I know, one shouldn't make errors, but unfortunately was the byproduct of having to do a ton of forms in a very short period of time last fall.

My question is, how to handle submission of amended 1999 Schedule B under EFAST? The Form 5500EZ and Schedule P were unaffected by the change. How should I submit? Have client resign a new "amended" 1999 5500EZ (showing no changes) along with the amended 1999 B? Submit revised 1999 Sch B along with the 2000 filing? Any help would be appreciated.

[Guest Steve C]

So long as a Credit Balance remains after correction, I don't see a need to file an amended 1999 B.

Instead, when filing the Schedule B for 2000 I'd use the corrected Credit Balance as a starting point (line 9(h)), and include a special attachment. The attachment should describe the error and illustrate the corrected 1999 Funding Standard Account entries. For simplicity, I'd show the full development of the 1999 FSA.