Late reporting of Form 5500 Schedule SSA Participants

[Guest William Zakowski]

The client has just provided termination dates for the first time in the past six years. Upon this new revelation, it is noticed that at least 20 participants terminated from 1996 - 1998 and still have an account balance without receiving distributions.

The question is this: Understanding the penalties associated with this ($1 per day per participant w/max of $5,000), would you just report them on the 2000 Schedule SSA and make client aware that it is possible they could be hit with these charges if ever audited or would you file each of the respective years SSA schedules which would clearly identify the problem in which case the DOL would issue the substantial fees to be paid? I am leaning with the latter but wanted some other opinions or other options that I may not be aware of. Thank You!

[pmacduff]

How about calling the DOL anonymously and posing the question to them? This would at least tell you the DOL preferred method of fixing the problem and you can advise the client accordingly.