No auditor's report was filed with 5500 and Schedule H

[Guest jharrel]

2002 Schedule H did not include auditor's report but all figures were correct.

Should we wait for IRS to ask for it?

File amended 5500 and Sch. H?

Send it with cover letter of explanation?

Nothing?

Thanks for your help.

[Guest cease]

I think prior posts will support that a complete 5500 was not sent to EBSA and would be subject to late filing fees from the IRS and DOL.

The recommended course of action, in my opinion, would be to file a completed return through the DFVC program (including the audit). This assumes that the return was due beyond late filing fees that exceed $2,000. As long as the DOL does not notify the plan sponsor that the plan was filed late, the plan sponsor can use the DFVC program.

[E as in ERISA]

The DOL will usually send a notice in this type of situation. That is definitely something that it looks for and that generates a notice. However, it generally won't assess a penalty unless one fails to respond to the notices.

It may also be a good idea to file an amended return with the audited financials attached -- in order to demonstrate that you have appropriate review processes in place (although not timely in this case) and are proactive.

But note that problems occur when the amended return and notices start getting crossed in the mail and you end up with two sets of incomplete returns floating around (e.g., you changed some things and added more to the amended return, but then hired someone to answer the notice and they didn't get the other changes and forgot something else and vice versa). Make sure you maintain one file with a complete return that includes all changes to date.

[Archimage]

I do not believe this to be correct. I have filed 5500s without the audit report attached. I will get a notice saying that the client has 30 days to supply the missing audit report before the 5500 is considered late. This can buy you an extra month or two.

Katherine beat me to the punch!

[Guest jharrel]

Thank you all for your help. I think an amended return with the audit attached is in order.

jharrel