Wrong participant count (by a few)

[Guest IluvNewComp]

If on the 2009 5500 SF there was an active participant count shown of 48 and 27 balances and was filed.

After a check, it's really 50 actives with 28 balances.

If the plan gets audited, how much trouble, in reality, will they get in? (Not how much trouble could they get in. I understand there are serious consequences for filing returns with wrong info.)

The error is clearly not enough to put the plan under/over the threshold for large/small plan filer.

Anyone have experience with being "caught" with this error?

[Guest Sieve]

I don't know the answer, but it would seem to me that amending the 2009 return would be the way to go to prevent any difficulties in the future.

[Belgarath]

How much trouble "will" they get is unanswerable. Some auditors couldn't care less about such a trivial mistake, (if they catch it) and would just have them file an amended form. Our you could get an auditor who is a brass-plated basta$%, who proposes major penalties, and now you have to fight. Given that an amended form is not a big deal, I certainly agree with Sieve - fix it and be done with it. We all have horror stories (true ones) about obnoxious auditors.

[Bird]

Mmm. Well, fwiw, I wouldn't bother.