Audit Requirements

[Jilliandiz]

What if a plan was determined to be a Large Filing Plan beginning with 2004, and then again in 2005 it was filed as a Large Plan…however it was never caught by the TPA that a 2004 audit was required…can you skip the 2004 audit year and begin with the 2005 audit year? What are the consequences or suggestions for not auditing the 2004 plan year, but began with the 2005 plan year instead? Is that even an option?

[david rigby]

Perhaps I do not understand the Q. R U stating that the 5500, including Schedule H, was filed for 2004 without an audit report? How was line 3 of the Schedule H completed?

[E as in ERISA]

Sometimes it takes a while for the DOL to send notices. They could still eventually get the notice that says that they better have a 2004 audit or else pay $50,000. They usually have a short time to respond to those notices. So I'd start the 2004 audit before the notices begin.

[Nate X]

"…however it was never caught by the TPA that a 2004 audit was required…"

Since it was REQUIRED for the plan to file as a large in 2004, the worst thing you can do is nothing. Be proactive.

Here's why...For failing to file an Audit report when required, the DOL "may" treat the return as if it was never filed and assess penalties accordingly. The "may" is important because the plan will more than likely avoid any penalty by filing an amended return as a large along with an audit report.