DOL Letters for Not Completing Part II of Schedule B

[Chester]

For some time now the DOL has been sending letters to some of our clients saying that Part II of the Schedule B needs to be completed. However, Box F on the first page of the form is checked indicating that there were 100 or less participants in the prior plan year, and the instructions clearly state for Line 12 that Part II does not need to be completed if there 100 or less participants in the prior plan year. The DOL thinks Part II should be completed since there are more than 100 participants for the current plan year Schedule B. We sometimes encounter resistance from DOL officials even when we point out this exemption to them. I was wondering if other people are getting these notices, and if you received any indication from DOL that they are fixing their software. It is definitely annoying and time consuming to have to respond to these inquiries on behalf of our clients, not to mention the fact the client sometimes gets heated up about these letters (thinking we are at fault and not the government). Has anyone else experienced this?

[WDIK]

Annoyance and wasted time from dealing with the government?