Attach Draft of Auditor's Report to 5500 Filing

[NJ Mike]

We have a client with first year audit requirement who waited to hire auditor. Auditor will not have report completed by 10/15 filing date and wants client to attach the "Draft" copy of report which we received today.

Any thoughts?

[Andy the Actuary]

Sounds as if the filing would not technically be timely submitted.

[david rigby]

Don't know how the DOL will treat the draft attachment. But it's probably not as bad as no attachment.

[jpod]

it's only October 6; find another auditor

[Lou S.]

Although not something I experienced first hand, I understand in the "good old days" this was somewhat standard procedure for some plans to get a de facto extension of time to complete the audit.

Under the computer age filing I don't know if it works anymore.

FWIW, If it was my plan, I'd file with the "draft Audit" and file an amended return the day I got the "final Audit". But I'm not sure that's the formal advice I'd give a client.

[Peter Gulia]

TPAs have told me that the computer systems won't process a 5500 submission unless a box in Schedule H line 3d is marked or at least some .pdf is uploaded in the Accountant's Opinion slot.

Is this correct?

[NJ Mike]

The form was filed with the Draft Accountant's Opinion. So far, it seems to have been accepted. It is scary that when you view the form on the EFAST site, the Draft opinion is right there for all to see.

[K2retire]

I have been discussing this very issue with a CPA today. She said they always recommend filing without the audit report and waiting for the DOL to notice it is missing. She believes that immediately providing the final audit report when contacted will avoid all penalties.

I agree that the client may not have a better alternative, but it was my impression that all penalties would apply.

Which have any of you encountered?

[Peter Gulia]

K2retire, for the situation you described, will the computer systems accept processing of a 5500 submission if no .pdf is uploaded in the slot for the accountant's report?

[K2retire]

K2retire, for the situation you described, will the computer systems accept processing of a 5500 submission if no .pdf is uploaded in the slot for the accountant's report?

I believe I have to attach something, but I haven't actually done it before, so I'm not certain.

[ESOP Guy]

K2retire, for the situation you described, will the computer systems accept processing of a 5500 submission if no .pdf is uploaded in the slot for the accountant's report?

I believe I have to attach something, but I haven't actually done it before, so I'm not certain.

I once heard of one of my former co-workers saying they attached a simple pdf saying, "audit report not complete as of filing date" (or something like that) and the computer allowed it to be filed as the computer merely looks for an attachment it can't tell if it is a complete or proper attachment.

[Bill Presson]

Even if the computer system allows it to be filed, the DOL can still reject the filing.

I think it's a risk, but I guess you can try.

What the CPA is suggesting used to be done often prior to electronic filing.

I would be more likely to just not file and do a DFVC later.

[K2retire]

I'm thinking about making a PDF of the e-mail from the CPA with this suggestion and attaching that.

[Peter Gulia]

ESOP Guy is right that the computer knows only that a .pdf is uploaded, not what its text states.

While this discussion shows a range of views, it seems to me that filing by the due date what the plan's administrator can truthfully state on that day should be better than not having done an act that shows attention to the filing duty.

Of course, the administrator should follow by completing and revising the report as promptly as it prudently can do.

[BG5150]

ESOP Guy is right that the computer knows only that a .pdf is uploaded, not what its text states.

While this discussion shows a range of views, it seems to me that filing by the due date what the plan's administrator can truthfully state on that day should be better than not having done an act that shows attention to the filing duty.

Of course, the administrator should follow by completing and revising the report as promptly as it prudently can do.

Don't forget to mark it an an amended return...

[BG5150]

Side note: I know when you file an amended return at EBSA, it "overwrites" the previous one; at least the one that can be seen online.

Does the DOL keep the original(s)?