Disqualification for "late" contribution?

[AndrewZ]

Regarding the same plan under audit in my last post - the employer still owes some 2001 matching contributions. The IRS agent wants it to fund the missing contributions, then put the plan through Audit CAP to avoid disqualification for "failure to operate in accordance with the document." I can't think of any statutory authority to support this, as long as the contributions are eventually made (or does the fact that the audit has been initiated create an artificial "deadline" that the employer has passed?). I don't believe there are any statutory deadlines for employer contributions, other than for the purposes of deduction and 415.

Also, the IRS agent wants to accrue interest on the matching contributions - again, I don't believe there is any requirement for this on employer contributions, only required by the DOL on employee contributions.