8955-SSAs for defaulted loans

[Cynchbeast]

We have a few clients who after leaving us, saw the error of their ways and came back, with plans in distress asking us to help them bring their plans current. The most extreme is one case of a client with two plans needing 9 years worth of amended or DFVC filings (about 4 or 5 are DFVC).

Rather than preparing the 8955-SSA (or SSA) for each year that one would have been required, our inclination is to just prepare the 8955-SSA forms for the final year's filings (which will be 2012). If we do it this way, we also would report only those people remaining to be reported (in other words, if someone would have been added (code A) and paid out (code D) within the years we have worked on we would just omit them, leaving only those newly reported participants (code A), or participants who were paid out and had been previously reported (code D).

Opinions?

[ESOP Guy]

That is what I would do. Report just the people who still need to be reported on the current year's form.

Having said that I don't think one can find any specific guidence saying that is acceptable in the government's mind so I guess there is always a risk they could say that is wrong. I just have never seen an 8955-SSA or SSA subject to an audit.

[Cynchbeast]

Thank you for the advise. That is pretty much what I figured.