Audit Report not ready at time of E-filing

[asteve46]

I hope someone can assist with the questions below. We are trying to anticipate the issues that will arise with clients that wait until October 15 to file and do not have the financial statements available. Please post if anyone has had experience with two scenarios described:

Scenario 1:

The 2009 Form 5500 is required to attach the report of the IQPA, but the report will not be attached to the electronic filing that is submitted with the Form 5500 to the DOL. Part III of the Schedule H is not completed. The filing will be accepted by the DOL as a timely filed return, but the filing should be amended ASAP. This is consistent with FAQ25. Per the EFAST2 helpdesk the filing status most likely will be the status “Filing Error”, but they are not sure.

Which filing status will be received - Filing Stopped, Filing Error or Filing Received (all indicate that the return is timely filed; the first two indicate an amended returns is required)

Scenario 2:

The 2009 Form 5500 is required to attach the report of the IQPA, but the report will not be attached to the electronic filing that is submitted with the Form 5500 to the DOL. Part III of the Schedule H is completed. The EFAST2 helpdesk does not know whether or not this filing will get Filing Unprocessable (not timely filed) or Filing Error/Filing Stopped.

Which filing status will be received - Filing Unprocessable, Filing Stopped, Filing Error or Filing Received? Filing Unprocesssable indicates the return is not timely filed; so we move into a DFVC filing instead of amended return filing.

Thanks.

[Tom Poje]

as I recall from a webinar given by the DOL, gone are the days you could send in the 5500 without the auditor's report, receive a note back from the DOL months later saying there was no auditors report, and then you would send it in saying you forgot to attach it. a sneaky way of getting around the timing rules. now it will simply be late, end discussion, beg for mercy.

[Andy the Actuary]

Will this work?

Include a pdf in each spot where an exhibit should go. The pdf would state that the exhibit was not received as of the filing deadline and the filing will be resubmitted once received. Then, at least, the filing should not be kicked out by edit.

[chc93]

What about a letter to the auditors that if the IPQA is not received by Oct 10 (or whenever), the auditors will be responsible for any late filing charges assessed by EFAST/DOL. (Maybe this should have been told to the auditors before they accepted the work, but might work for the future.)

[austin3515]

These things are so rarely the auditors fault. Much more likely the austior was hired last week b/c the client procrastinated...

I don;t know what the status will be but it will be considred filed, and you'll need to do an amendmed.

Personally, I've never understood why so many prominent people suggest this course, when the administrator is signing under penalty of perjury that the report is complete.

[chc93]

These things are so rarely the auditors fault. Much more likely the austior was hired last week b/c the client procrastinated...

In our limited experience with only a few plans requiring audits, it is almost always the auditor's "fault". The are hired (or know they are hired) by the beginning of the plan year, and they get all the information the need by April or so, but don't start till mid-Sept or even later. Then it's a scramble...

[A Shot in the Dark]

It is my experience that many auditors prefer to wait until the summer time to complete Plan audits. Presumably their audit teams are tackling tax stuff in the spring.

But I agree with Austin, rarely have I seen fault by the auditors in late filings.

I just wish they didn't charge so much.

[BG5150]

I just wish they didn't charge so much.

Maybe you should get into the auditing game. Sounds like there's some cash to be made...