Reporting of Prohibited Transaction

[Cynchbeast]

I had an earlier thread discussing a plan sponsor who borrowed money from the plan, not realizing it was prohibited transaction. As of yesterday, all money borrowed plus lost earnings has been repaid to the plan - the plan is now whole.

I am preparing 5500 (PYE 06/30/15) and 5330 and need some feedback from anyone who has ever dealt with such a situation. Instructions for Form 5500-SF, Line 10b include the tip shown below. Can anyone shed some light on what would allow us to NOT report the transaction and file the 5330 (thereby saving sponsor the excise tax).

From 5500-SF instructions, line 10b:

TIP: Applicants that satisfy the VFCP requirements and the conditions of PTE 2002-51 (see the instructions for line 10a) are eligible for immediate relief from payment of certain prohibited transaction excise taxes for certain corrected transactions and the requirement to file the Form 5330 with the IRS. For more information, see 71 Fed. Reg. 20261 (Apr. 19, 2006) and 71 Fed. Reg. 20135 (Apr. 19, 2006). When the conditions of PTE 2002-51 have been satisfied, the corrected transactions should be treated as exempt under Code section 4975© for the purposes of answering line 10b.