Plan Not Adopted by Employer

[Guest naveen]

Thanks in advance to all respondents. (Let me know if additional information is required)

Corp A, 100% owned by Dr. A setup two plans - DB & 401(k) effective 01/01/2002. Plan covers Dr, his spouse and 5EEs.

Dr. A establishes Corp B (100% owned by himself) beginning 2005. He and 5 EEs are paid from Corp B and his wife is paid from Corp A.

I guess this is a controlled group situation and the plans must cover all EEs of both A & B. However, the Corp B did not adopt the plans sponsored by Corp. A and all reporting went on until 2008 assuming all employees were employed by Corp A. The recent DC restatement was adopted by both employers A & B. Also, earlier paln documents had provisions considering employment from related employers. In addition, deduction for employer contributions was taken on the tax returns of Corp. A.

I have a few questions:

1. Is the plan a nonamender and VCP is the only correction method?

2. What is the required correction in re: on erroneous deductions?