Filing a Form 5500 and Schedule I which are the incorrect Forms

[DPSRich]

I have been asked to terminate an integrated Profit Sharing Plan with a 7/1-6/30 Plan Year. The Plan has been in effect since 1986. The accountant has been completing the administrative work from the inception until the 6/30/23 year end. I have been retain ed for the 6/30/24 PYE and the final year with a termination date of 8/31/24. Many issues, like name on the 5500 Form not matching the Plan Document.

The accountant has been filing Form 5500 and Schedule I since 2009, when the 5500-SF was introduced. I was going to file the SF for the 6/30/24 and short Plan Year, BUT the last post by Belgrath raised a question about filing a wrong form. Paul I answered that the IRS could invoke penalties for filing the wrong form.

My question is; should I continue filing the 5500 and Schedule I, knowing it is the incorrect form or switch to the SF and perhaps "raise RED FLAGS" for all the previous years?

All help will be GREATLY APPRECIATED!

Have a SAFE 4th.

DPSRich

[Bill Presson]

Always do the right thing. In addition, be willing to help the client (or the accountant) solve their problem but never let their problem become your problem. 

[Gilmore]

On 7/2/2024 at 11:27 AM, DPSRich said:

should I continue filing the 5500 and Schedule I, knowing it is the incorrect form

In the 5500-SF instructions, "What to File", it says, "Plans required to file an annual return/report that meet all
of the conditions for filing the Form 5500-SF may complete and file the Form 5500-SF in accordance with its
instructions."

There are a lot of "musts" in the instructions, but here they use "may".  Is there any reason a small plan filer that is otherwise eligible to file a 5500-SF cannot choose to file a 5500 with Schedule I?

[DPSRich]

Thank you gentlemen.