SchedH and deferred audit

[hunter001]

We have a large plan that we were under the assumption transferred to a new provider 3/1/15. Come to discover the plan termed and merged to a newly formed plan effective 3/1/15 and came to the conclusion we would be responsible to prepare the final 2015 Form 5500. Auditor is telling us and the client that the plan may defer the 2014 audited financial statements and file with the 2015 short plan year utilizing Line 3d on SchedH. My understanding is this maybe used if the first of two consecutive years is a short year end, not the second. Of course our software wont even allow a large filing be submitted without an audit report.

[Lou S.]

It can be either year (provided the short PYE is no more than 7 months). You need to attach an explaination of why the audit is not attached and being deferred to the next year. And the next year has to have the audit results for both PYEs. We've never had one in practice so I can't help with the mechanics but the instructions seem pretty clear.

I'd suggest contacting your software vendor on how to handle as you can't be the first to come across this issue when filing.

[david rigby]

... the plan termed and merged to a newly formed plan effective 3/1/15...

Perhaps it is clear elsewhere, but this does not make sense. A plan cannot both terminate and merge.