Controlled Group - No one Knew

[Guest John Sample]

What happens when a controlled group existed between two companies, but no one (?) knew about it?

The same two individuals own two companies: 50% - 50% each.

The companies each had qualified plans - one a 401(k), one a plain profit sharing; each company had different recordkeepers and investment vehicles, so no one was aware that a controlled group existed (although I assume they have the same accountant, they did not answer the controlled group question properly on the year-end census that they received each year).

Also, what if both companies are on Standardized Prototypes, which would not allow any employees to be excluded?

Is this an IRS correction program problem / resolution?

Thank you.