5500 auditor report not independent

[Guest rulesrulesrules]

What are the penalties when a profit-sharing plan's 5500 auditor report was not prepared by an independent qualified public accountant? I don't think VFCP is available because we are under examination.

[Guest BXO]

I do not know the answer to your question, but who made the independence determination? Or, was there an issue with it even being done by an accountant?

I would think the 5500 would be incomplete; thus, it would be late and those penalties would apply.

[BeckyMiller]

In a number of public forums, the DOL's Chief Accountant, Ian Dingwall, has stated the the penalty for the failure to attach an acceptable ERISA set of audited financial statements is $50,000. Our experience has been that if you cooperate and get an acceptable set of audited statements submitted, you can negotiate down from that penalty, even outside of the organized relief programs. But, you need to timely respond to requests for information, demonstrate a cooperative attitude and all of that stuff.