A 401(k)plan currently under audit has been asked to correct an error in which a matching contribution was made to a HCE based on total comp., not comp. limited by 401(a)(17). The IRS has not identified two similar occurences that took place in the year under audit. Due to the size of the plan (over 200 participants) and the small amount involved (total overage is less than $3K), the two combined errors probably constitute an insignificant error which could be corrected under APRSC, despite the audit. Presuming the employer corrects under APRSC, shouldn't the employer disclose the two additional, corrected errors to the IRS?

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At this point. the most prudent thing to do is to show the IRS agent the other two mistakes and show that all three have been corrected. The plan would then be "blessed" by the IRS for the correction of all three mistakes, rather than just the one the agent detected.