Loan Repayments

[Guest JBeck]

Employer plan provided for loans; 5 participants elected loans; loan documentation provided for payroll repayment; employer "forgot" to commence repayment until a period longer than the default period but not longer than 5 years. What is the proper correction and what forum (APRSC, VCR etc.) is proper? We would like to correct by reamorizing the loan over the remaining period, but do not want to pay income tax because the default did not occur as a result of "missed payments" on the participant's part, but as a result of an administrative error.