failure to file audit report

[k man]

the return was sent back for failure to include the audit report but it was returned over a year ago. at this point are the penalties the same as the penalty for not filing the 5500? in my view the penalty would be the same as the penalty for not filing the report.

[Guest F1fan]

I think you are correct. I believe the DOL position has been that an incomplete report is treated the same as a late report for purposes of calculating any penalties. Page 7 of 2003 5500 Instructions reference filing a "complete report" in order to avoid possible penalties.