A compliance check does not prohibit the plan sponsor’s use of IRS correction programs to correct plan errors inexpensively. However, an examination involves a revenue agent visitation and precludes a plan sponsor from filing a Voluntary Correction Program application under EPCRS.
In addition to standard examinations, the IRS has increased the number of compliance checks to expand their enforcement presence through correspondence-based contacts.
The EPCU Project Selection Committee has chosen several areas of potential non-compliance and their list of current projects include:
- 403(b) Universal Availability in K-12 Schools
- Form 5330-4979 Excise Tax
- Funding Deficiencies
- Nonbank Trustee Project
- Leased Employee
- Partial Termination
- Simple IRA Plan
- Simplified Employee Pension Plans
The list above is not exhaustive. If you receive correspondence from the IRS please feel free to contact me to assist in fulfilling their information request. Failure to answer the correspondence could lead to an examination of the plan.
Castle Rock Investment Company, formed in 2006, is an independent woman-owned SEC-registered investment adviser located in Castle Rock, Colorado. We specialize in individual financial plans and qualified service plans.