Another 80-120 Question- Clarification

[MarZDoates]

I know this subject has probably been beaten to death and I have read some of the other posts. I just want to make sure I am understanding correctly.

Client has a 401(K) plan. In 2002 beginning of year participant count (Form 5500 line 6) was 82. Client filed Schedule I. In 2003, beginning of year participant count was 173. Is it correct that they have no choice but to file Schedule H (with audit) since the participant count is greater than 120?

Thanks.

[jquazza]

That is correct.

[Guest b2kates]

Correct, the measuring date is the first day of the plan year.

[MarZDoates]

Okay. It appears that this particular client filed Form 5500 w/ a Schedule H marked "Draft - Do Not File". The accountant's opinion was not completed and there does not appear to be an audit attached.

Client received a notice from DOL stating that there was incorrect information contained in the Schedule H. (Probably because no audit was done and was not filed on the proper form.) The DOL asked that correct information be supplied.

My question is, can this client file under the DFVC and beg forgiveness. Or would the notice they received from DOL prevent them from correcting the problem at this point and be subject to penalties until the audit is done and the form is corrected?

Any other suggestions? Thanks to all for replying. I really appreciate everyone's help.

[Blinky the 3-eyed Fish]

Just send the DOL the information they request. If it's the audit report, well then find someone to do it quickly.