Late Deferrals/Voluntary Correction Program?

[CJS07]

I'm working at a TPA firm where they suggest clients with late deferrals go through the Voluntary Correction Program. I have not encountered this at prior employers - we always filed 5330s and deposited the lost earnings and called it good. I went through an audit a year and a half ago in which a client had late deferrals and had filed a 5330 & deposited the earnings - the auditor was satisfied with that alone.

I currently have 2 clients who have late deferrals totaling less than $3,000 each. I'm wondering how many of you use the Correction Program in a case like this and if something has changed recently where the industry is using the Correction Program for late deferrals.

Thanks!