Key insights
- A missing audit report can trigger costly DOL penalties — even if the rest of your Form 5500 was filed on time.
- DOL outreach follows a defined sequence, which means early action can make a real difference.
- Knowing what to do — and who to call — can help plan sponsors respond calmly and avoid unnecessary disruption.
Review benefit plan needs before issues build.
Department of Labor (DOL) emails about missing audit reports often arrive without much context, and they can feel urgent — even overwhelming. Beyond potential penalties, these notices can create stress for internal teams and raise questions from leadership.
Understanding what the notice means, what timelines apply, and how quickly an audit can be completed helps plan sponsors control the situation.
The impact of a missing audit report
If an employee benefit plan has met the criteria for requiring an annual audit, plan sponsors have until the extended deadline of Form 5500 to include the audit report and financial statements in the filing. If the 5500 is filed without the audit report attached, it’s considered an incomplete filing.
Plan sponsors who submit an incomplete filing may be assessed significant DOL penalties for failure to comply with this regulatory requirement.
If a plan sponsor determines an employee benefit plan audit was required, getting the process started prior to receiving formal notice from the DOL is important. Once a notice has been received, the clock starts ticking, but the DOL often allows plan sponsors a grace period to amend the filing before penalties are incurred.
Four-step process of DOL communications to plan sponsors
1. Inquiry email
An inquiry email (not a formal notice) is sent to the plan administrator from the Division of Reporting Compliance. This email typically doesn’t require a response, but warns the plan sponsor the Form 5500 filing may be rejected and civil penalties may be assessed.2. Notice of rejection
A Notice of Rejection (NOR) letter follows the inquiry email, giving plan sponsors 45 days from the date of the letter to bring their filing into compliance. The NOR letter generally requires the plan sponsor to provide a written response to the DOL when the filing has been amended.3. Notice to assess a penalty
If the 45-day period elapses without a correction, the DOL will issue a Notice to Assess a Penalty (NOI). This is a plan sponsor’s final chance to respond, typically within 30 days, with a reasonable-cause explanation as to why the penalty should be abated.4. Notice of determination
The last communication received from the DOL would be a Notice of Determination (NOD). This letter outlines the DOL’s final decision, including the penalties assessed. While a response is not required, failure to do so within 30 days waives the plan sponsor’s right to appeal.Questions about one filing often connect to wider benefit plan changes worth understanding. Learn how recent EBP updates may affect your organization.
What steps should plan sponsors take?
If you’ve received an inquiry email or NOR, contact your auditor as soon as possible. These timelines move quickly, and having experienced help can reduce guesswork and back‑and‑forth during an already time‑sensitive window.
If the audit can be completed within the 45-day window of the NOR date, the filing can likely be amended without penalties.
Plan sponsors who have received an NOI or NOD should also contact ERISA counsel. Depending on the situation, ERISA counsel may be able to reduce or eliminate the costly penalties associated with an incomplete filing.
How CLA can help with employee benefit plan audits
If you’ve been contacted by the DOL — or suspect your filing may be incomplete — having the right audit support early can ease the process. Our employee benefit plan team regularly works with plan sponsors facing tight deadlines, complex filings, and follow‑up questions from regulators.
CLA is one of the leading providers of employee benefit plan audits in the country. We can help you understand your options, coordinate next steps, and complete required audit work efficiently so you can focus on running your plan — not responding to notices.