Failure to include Schedule SB

[JustMe]

Does anyone know what the repercussions are for failing to include a Schedule SB? Is it similar to failing to include an auditor's report on an audited plan and the client will receive a letter from the DOL providing 45 days for the client to correct the filing?

[PensionPete]

I believe it is considered an incomplete filing and is treated as having  "not been timely filed" with penalty and interest accruing immediately, and, I think this applies to a filing that does not include a required audit too.  I don't think the old IRS "45 days notice grace period" applies anymore.  

[Bob the Swimmer]

Remember also that if it is a single person plan, the SB is not required.

[Effen]

Not true.  It is required.  It is just not required to be filed.

[C. B. Zeller]

I don't have any first hand experience in this area, but I will merely observe that there is a separate penalty for failure to file the 5500 under IRC 6652(e) and for failure to file the actuarial report under IRC 6692. This might suggest that (for IRS purposes at least) the 5500 would be accepted without the schedule SB but you would start accruing the $1,000/day penalty under sec. 6692 at that point.

[Bob the Swimmer]

Effen--- That's what I meant--not required to be filed. I maintained one for my business for 12 years.