Headlines about "Ret plans - audits by gov't agencies"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Employers Should Review Employee-Related Plans and Practices Now
Excerpt: "With increased pressure on the IRS to collect amounts that have previously fallen between the cracks and the focus on executive compensation by Congress, the Treasury Department, the Securities and Exchange Commission and the press, the IRS is more likely to focus on employee-related issues within company tax audits. A current review of all employee-related plans and practices will increase the likelihood of employers finding most, if not all, discrepancies, thereby reducing the company's potential exposure in an IRS audit. Employers should review all employee plans and arrangements now to ensure that the company is in compliance with all laws and regulations. By doing so, a company will be able to better defend its taxation positions in the event of an IRS audit." (Pillsbury Winthrop Shaw Pittman LLP)
[Guidance Overview] IRS's Benefit Plan Audit Materials
Excerpt: "The Internal Revenue Service (IRS) recently published an updated list of common plan mistakes found during IRS Employee Plans Team Audits (EPTA) and an internal controls questionnaire used by EPTA auditors. Although the EPTA Program focuses on retirement plans with at least 2,500 participants, the published materials give all plan administrators valuable insights into the IRS's audit process and what the IRS believes plan sponsors can do to avoid common errors in plan administration. Plan sponsors can utilize these tools to assess their plans' current compliance and to correct any mistakes identified." (Tax Management Inc.)
[Guidance Overview] Common Scenarios in Which Plan Sponsors Should Contact Consultants (PDF)
8 pages. Scenarios include mergers and acquisitions, bankruptcy, new affiliates, a change in legal form, audits, layoffs, adding a new benefit, and utilizing the services of leased employees or independent contractors. (Marshall & Ilsley Trust Company N.A.)
Labor Secretary Hilda Solis Says That Now There Is a Sheriff in Town?One That Talks As Though It Will Use Both a Carrot and a Stick
Excerpt: "While early bets are that the new leadership at DoL will set a different course (some say a very different course) than its predecessors, Borzi laid out a new and vigorous plan for the Employee Benefits Security Administration (EBSA) that she now heads. 'Right now we have a full plate,' she acknowledged, but it was clear that enforcement of the law and promises made will be a driving focus. 'The previous Administration focused on compliance assistance,' she noted, 'but that's only good if it is combined with strong enforcement.'" (PLANSPONSOR.com; free registration required)
[Guidance Overview] DOL Scrutinizes ERISA Plan Audits (PDF)
2 pages. Excerpt: "Do you sponsor any employee benefit plans that are required to be audited on annual basis? If yes, you should be aware that the DOL is targeting certain auditors and is seeking penalties from the plan administrator (typically, the employer) of up to $1,100 per day, or $50,000 per annual report, when it believes that the audit work is deficient. There are a number of due diligence steps you can take in an effort to comply with ERISA responsibilities, and to reduce exposure in this area." (Porter Wright Morris & Arthur LLP)
IRS Survey on Determination Letter Filing Program for Retirement Plans, Including Amendment Requirements
Excerpt: "The IRS Advisory Committee on Tax Exempt and Government Entities (TE/GE) (the 'ACT') is undertaking a study of the determination letter application process, how it is working, and how it might be improved. As part of this effort, the ACT is particularly interested in the views of stakeholders, such as employers, benefits attorneys, third-party administrators, consultants, and M&P providers regarding their experience with the determination letter process as well as plan amendment and restatement requirements. Please use the following online survey form to provide your views, or send them in another form (described later on this page)." (Internal Revenue Service)
[Guidance Overview] Self Correction After Audit (PDF)
Pages 4, 6 of 7 pages. Excerpt: "In order to be eligible for self correction, the employer must have in place -- at the time the error occurred -- practices and procedures which, if followed, would have prevented the error. This is true regardless of whether the defect is being corrected under the two-year correction period or outside of that period, as an insignificant defect, because 'established practices and procedures' is a threshold eligibility requirement under SCP. If an employer is attempting to use self correction after the time the plan has come under audit by the IRS, it will also have to be able to establish that the defect is 'insignificant' under all the facts and circumstances of the case. The determination of whether operational failures are insignifi cant is left to the discretion of the IRS, using a series of non-exclusive factors listed in Section 8.01 of the Rev. Proc." (Reish & Reicher)
The ?6707A Penalty Nightmare Application to Listed Transactions and Tax Avoidance (PDF)
Pages 3, 5 of 7 pages. Excerpt: "Currently, the Internal Revenue Service ('IRS') has the discretion to assess hundreds of thousands of dollars in penalties under ?6707A of the Internal Revenue Code ('Code') in an attempt to curb tax avoidance shelters. This discretion can be applied regardless of the innocence of the taxpayer and was granted by Congress. It works so that if the IRS determines you have engaged in a listed transaction and failed to properly disclose it, you will be subject to a potentially draconian penalty regardless of any other facts and circumstances concerning the transaction. For some, this penalty has been assessed atalmost a million dollars and for many it is the beginning of a long nightmare." (Reish & Reicher)
[Guidance Overview] Audit CAP as a Dispute Resolution Technique (PDF)
Pages 1, 5 of 7 pages. Excerpt: "This case is important for several reasons. First, it highlights the value in being able to present practical solutions to the IRS, in a manner that is acceptable to the revenueagent − this is how we were able to ultimately obtain the correction methodology that was initially rejected by the IRS. Second, this case illustrates how carefully choosing the correction methodology can produce good results apart from the plan. Specifically, the correction in this case permitted the doctors and their advisors [to] avoid wasting time (and potentially money) trying to figure out who was at fault for not getting an advance ruling [from] the IRS on whether an affiliated service group existed among the doctors and ABC." (Reish & Reicher)
[Guidance Overview] IRS Extension of End of Remedial Amendment Period and Affirmation of Cycle E Option for Governmental Plans
Excerpt: "EBIA Comment: The IRS is trying to identify and address plan qualification issues that are unique to governmental plans (see the IRS's webpage for governmental plans, available at http://www.irs.gov/retirement/article/0,,id=181779,00.html). This modification of the remedial amendment cycle for governmental plans is another step in that initiative." (Employee Benefits Institute of America)
[Guidance Overview] Employers Should Be on the Lookout for Common Retirement Plan Errors
Excerpt: "The Internal Revenue Service recently published a list of common recurring mistakes it sees in large case audits of qualified retirement plans and in submissions under its Voluntary Correction Program. This list provides employers with a useful checklist for reviewing the operations of their qualified retirement plans. A number of these errors result from the actions of the third party administrator (TPA). Often the TPA's errors result from the employer's failure either to provide current and accurate information regarding eligible employees and eligible compensation or to properly review and monitor the actions of the TPA." (Haynes and Boone LLP)
[Guidance Overview] IRS Cycle D Retirement Plan Filings: Six Months and Counting
Excerpt: "Preparing this determination letter filing may take longer, and require more assistance from counsel and others, than past filings because of the new IRS determination letter program rules. Therefore, to assist employers, Sibson Consulting is devoting this issue of Compliance Alert to Cycle D action items." (The Segal Group, Inc.)
[Guidance Overview] IRS Modification of Determination Letter Process for Governmental Plans to Extend Remedial Amendment Period and to Permit Filings in Cycle E (PDF)
3 pages. Excerpt: "In Revenue Procedure 2009-36, I.R.B. 2009-35 (Aug. 31, 2009), the IRS further modified the determination letter process by (1) extending the timeline by which a governmental tax-qualified plan must adopt amendments required as a condition of a favorable determination letter after the favorable letter is issued and (2) formally revising the determination process rules in Revenue Procedure 2007-44 to permit governmental plans to file during Cycle E by January 31, 2011 as provided in the prior guidance published on the IRS website[.]" (Groom Law Group)
[Opinion] ACLI Comment Letter to DOL Seeking 403(b) Plan Guidance (PDF)
3 pages. Excerpt: "We also write to urge EBSA to provide audit relief and reporting guidance for purposes of establishing an opening balance for the 2009 Form 5500 annual report for 403(b) plans as well as clarify one of the criteria set forth in the FAB." (American Council of Life Insurers)
[Guidance Overview] Navigating Qualified Plan Correction in Light of IRS and DOL Differing Perspectives
Excerpt: "The Employee Retirement Income Security Act of 1974, as amended (ERISA) is organized statutorily to empower the DOL to regulate the applicable fiduciary, trust, and claims and enforcement requirements. However, other requirements of qualified plans concerning coverage, eligibility, vesting, funding, and enforcement are included in ERISA but also duplicated in the Internal Revenue Code (Code). In addition, the reporting and disclosure requirements overlap regulation by both agencies. The result is that certain plan provisions, when violated, come under the regulatory authority of both the IRS and the DOL concerning the consequences, i.e., the method of correction and the penalties involved for violation. Recently, both agencies have been working to improve coordination between the two primary programs available for correction with agency approval, i.e., the Voluntary Correction Program (VCP), part of the Employee Plans Compliance Resolution System (EPCRS), under IRS auspices and the Voluntary Fiduciary Correction Program (VFCP) under DOL auspices." (Tax Management Inc.)
[Official Guidance] IRS Memorandum on Corrective Amendments to Pre-Approved Plans (PDF)
8 pages. (Internal Revenue Service)
[Guidance Overview] IRS Requires Use of Most Recent Form 5307 for Determination Letter Applications
Excerpt: "Form 5307 determination letter applications for adopting employers of pre-approved plans, postmarked on or after August 1, 2009, must be submitted using the most recent version of Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans (Rev. March 2008), according to the IRS Employee Plans News. The IRS stated that it will return applications that are filed using an earlier version of Form 5307 to the applicant." (Wolters Kluwer)
[Guidance Overview] DOL's Transitional Relief for 403(b) Plan Form 5500 Annual Reporting and Audit Requirements (PDF)
4 pages. Excerpt: "[Field Assistance Bulletin 2009-02] clarified that plans eligible for the so-called '80-120 rule' would be eligible for a waiver of the audit requirement for the first reporting year. The '80-120 rule' generally provides that if a plan has between 80 and 120 eligible participants as of the beginning of the plan year, the plan administrator may elect to file the same category of annual report (typically the annual report for plans with fewer than 100 participants) that was filed for the previous years. Accordingly, 403(b) plan administrators whose plans have between 100 and 120 eligible participants will be eligible for a waiver of the audit requirement for the first reporting year." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] IRS's Benefit Plan Audit Materials
Excerpt: "The [Employee Plans Team Audits] materials are important tools that plan administrators may use to conduct self-audits of plan compliance." (McDermott Will & Emery)
All You Need to Know About ERISA Audits
Excerpt: "It's ERISA audit time again. Now that the regular tax season is over, accountants soon will be turning their attention to ERISA plan audits. If your retirement plan is subject to the audit requirements, here are the basics you should know - including how not to hire an auditor." (Employee Benefit News; free registration required)
[Guidance Overview] SARSEP Plan Fix-It Guide (PDF)
28 pages. Excerpt: "Tips on how to find, fix, and avoid common mistakes in retirement plans. In response to customer feedback, we have also posted user-friendly Fix-It Guides. This enables users to navigate, select and print only the mistakes that are of interest to them." (Internal Revenue Service)
[Guidance Overview] IRS's Multi-Year Random Audit Program on Employer Tax Returns
Excerpt: "The IRS announcement noted that although these random audits may target any reporting aspect of the tax return, the primary focus will be to verify whether the taxpayer has complied with the relevant employment tax law concerning: Worker classification (employee vs. independent contractor); Executive compensation; Fringe benefits; and Reimbursed expenses." (Haynes & Boone)
IRS Newsletter Highlights Updates to Web Resource Page on Large Plan Audits
Excerpt: "IRS has updated its web page devoted to the Employee Plans Team Audit Program (EPTA), which focuses on audits of large retirement plans by a team of IRS specialists. The Summer issue of Employee Plans News highlights many changes to the site, including summaries of common audit issues now organized by plan type. IRS also posted its 'Internal Controls Questionnaire,' with examples of audit questions that assess system procedures and internal controls. IRS developed the questionnaire to spotlight compliance responsibilities and areas of coordination between plan sponsors and administrators." (Mercer LLC)
[Official Guidance] Summer 2009 Issue of 'Employee Plans News' from IRS (PDF)
13 pages. Excerpt: "This edition contains the following articles: . . . Two-Year Adoption/Submission Period for DC Pre-Approved Plans Expires on April 30, 2010 . . . The EPCU Insider . . . Free Phone Forums . . . A New Look for EP Large Case Program Web Page . . . Employee Plans Published Guidance . . . Calendar of EP Benefits Conferences." (Internal Revenue Service)
IRS Adds Tools to Help Plan Sponsors Prepare for Plan Audits
Excerpt: "The Internal Revenue Service (IRS) has recently added updated tools to its Employee Plan Team Audit (EPTA) Web site. An Internal Controls Questionnaire provides examples of questions asked by EP examiners to understand the system procedures and internal controls. The questionnaire is broken up into four areas: Human Resources (HR) personnel; payroll; plan failures; and plan administration. The EPTA Compliance Trends & Tips area lists plan mistakes that IRS Employee Plans sees recurring in large case audits and voluntary compliance submissions." (PLANSPONSOR.com; free registration required)
[Guidance Overview] IRS's Internal Control Questionnaire to Help Plan Sponsors, Administrators with Plan Compliance
Excerpt: "The questionnaire, which was developed with outside practitioner input, provides examples of questions asked by EP examiners to acquire an understanding of system procedures and internal controls. The questionnaire is divided up into questions concerning plan failures --internal control impact, plan administration, HR personnel, and payroll." (Wolters Kluwer)
[Guidance Overview] IRS Will Focus on Qualified Retirement Plan Failures This Year
Excerpt: "The IRS has listed on its website the most common failures in qualified retirement plans. The apparent purpose of the listing is to raise awareness of the more common failures so that sponsors may have an opportunity to take corrective action and perhaps begin steps towards voluntary compliance before an audit." (Baker, Donelson, Bearman, Caldwell & Berkowitz, PC)
IRS Trends, Tips, Internal Control Questionnaire and Plan Documentation Guide Online
Excerpt: "The Internal Revenue Service (IRS) has recently added important guidance to its Employee Plan Team Audit (EPTA) website that is very helpful to retirement plan sponsors and retirement plan administrators. This article summarizes the important features of these IRS materials." (Littler Mendelson P.C.)
Audit Risk Is Rising: What an Employer Can Do Before an Audit Happens
Excerpt: "The IRS announced that it will begin conducting detailed employment tax audits on certain taxpayers as early as November of this year. Employers will be selected for audit based on a statistical sampling method, and not necessarily on suspicious past tax returns. One IRS representative speculated that there may be 6,000 of these employment tax audits over the next three years. Among the employment tax items the IRS may scrutinize on an audit are: worker classification, fringe benefits, officers' compensation, and expense reimbursements." (Poyner Spruill LLP)
Recent Survey of Retirement Plan Sponsors Offers Some Worrisome Findings on Governance and Compliance Issues
Excerpt: "Central to the [Retirement Plan Survey 2009] is the finding that only 29 percent of plan sponsors polled report a clear chain of authority for their plan's governance committee, making it difficult for most of them to support certain fiduciary decisions if faced with a Department of Labor audit." (Human Resource Executive Online)
[Guidance Overview] Presentations by IRS at April 2008 Governmental Plans Roundtable
Powerpoint slides. Excerpt: "The following sessions were presented at the Roundtable: Navigating the Staggered Remedial Amendment Period . . . Requirements Relating to Section 414(d) Governmental Plans . . . EPCU and Examinations Efforts . . . Federal State and Local Governments (FSLG) . . . EPCRS & Governmental Plans . . ." (Internal Revenue Service)
IRS's Online Internal Controls Questionnaire: A Helpful Tool for Monitoring Fiduciaries
Excerpt: "The DOL holds that fiduciaries have a duty under ERISA to monitor their service providers who are involved in plan administration. The IRS has recently posted on their website an Internal Controls Questionnaire [at http://www.irs.gov/retirement/article/0,,id=206492,00.html] which fiduciaries might find useful as a tool in determining whether their service providers have practices and procedures in place which will ensure compliance with plan terms and the statutory provisions of ERISA." (ERISA Fiduciary Guidebook)
IRS Semiannual Regulatory Agenda Includes Filing Solution for Schedule SSA
Excerpt: "The IRS has released its semiannual regulatory agenda for Spring 2009, which includes pension and benefit regulations that are currently under development or review." (Wolters Kluwer)
[Guidance Overview] IRS Provides Online Copy of Internal Controls Questionnaire Used during Audits
Excerpt: "The posting of these questionnaires is helpful to plan sponsors because they now have a 'heads up' as to what to anticipate in an IRS examination and can use these questionnaires to be better prepared. Please note that, while the IRS has stated informally that it no longer asks for a copy of formal or informal self-audits conducted by the plan sponsor, some of the questions that the IRS asks in its questionnaires does appear to be aimed at extracting information that would normally be obtained from such audits, i.e. 'Do you know of any operation or form failures with the plan' and 'What are the failures and how many years did it occur?'" (Attorney B. Janell Grenier via Benefitsblog.com)
[Guidance Overview] IRS Auditors Provide Tips and Trends on Retirement Plan Compliance
Excerpt: "The U.S. Internal Revenue Service provides compliance trends and tips for qualified retirement plans from their Employee Plans Team Audit (EPTA) Program Web pages. These pages highlight plan mistakes that IRS plan auditors see recurring in large case audits and voluntary compliance submissions. The trends are now categorized by plan types including multiemployer plans, 401(k) plans, defined benefits plans and 403(b), 457 and other governmental plans." (International Foundation of Employee Benefit Plans)
[Official Guidance] Text of 'IRS Retirement News for Employers' -- Spring 2009 Edition (PDF)
14 pages. Excerpt: "The EP Team Audit (Large Case Program) web pages have been updated to include: EPTA Trends and Tips (now organized according to plan type): Common Trends Across All Plan Types; Multiemployer Plan Trends; 401(k) Plan Trends; Defined Benefit Plan Trends; 403(b) Tax-Sheltered Annuity Plan, 457 Plan and Governmental Plan Trends; 'EPTA Trends and Tips' includes links to videos on the EPTA program and on finding, fixing and avoiding plan errors; Internal Controls Questionnaire - Examples of questions asked by EP examiners to understand the system procedures and internal controls; Taxpayer Documentation Guide - This guide, developed by EPTA agents and outside practitioners, provides a comprehensive list of documents that need to be made available for examination." (Internal Revenue Service)
[Guidance Overview] How Soon Must 401(k) Salary Deferrals Be Transmitted to the Plan? (PDF)
Pages 1, 3 of 6 pages. Excerpt: "[M]any employers assume that as long as they deposit employee contributions before the 15th business day of the following month, they are making timely deposits. Not so. When auditing a 401(k) plan, the DOL reviews the employer's deposit pattern. The DOL may consider contributions late even if they are transmitted within the time period described above. Many employers have been penalized for late deposits based on the DOL's interpretation of these regulations." (Swerdlin & Company)
Target-Date Funds Could Fall Under ERISA
Excerpt: "Avatar Associates LLC is asking the Department of Labor for an advisory opinion that could, for the first time, subject mutual fund companies offering target-date funds to ERISA. While some attorneys say the chances that the DOL will buy Avatar's argument are slim, they acknowledge the stakes are huge. A ruling in Avatar's favor could expose mutual fund companies that offer target-date funds to fiduciary lawsuits under the Employee Retirement Income Security Act." (Pensions & Investments)
[Guidance Overview] Glossary of Special Voluntary Fiduciary Correction Program Terms (PDF)
3 pages. (Prudential Retirement)
[Guidance Overview] Eligible Transactions and Corrections Under the VFC Program (PDF)
21 page chart. Excerpt: "Although delinquent participant contributions to insured welfare plans and welfare plan trusts can be corrected under the VFC Program, this document covers only the transactions/correction applicable to retirement plans." (Prudential Retirement)
[Guidance Overview] DOL's Voluntary Fiduciary Correction Program (PDF)
Excerpt: "In 2000, the Department of Labor (DOL) created the VFC Program. This program allowed plan sponsors and fiduciaries to voluntarily correct certain fiduciary violations and avoid civil and criminal penalties. In 2002, the DOL revised the Program to include a prohibited transaction class exemption to provide excise tax relief for four specific transactions. In April 2005, the DOL made additional changes to simplify the submission process and expand the availability of the Program. In 2006, the DOL made additional changes to the VFC Program, including the addition of two more transactions to the prohibited transaction class exemption. This publication describes the Program as it stands today." (Prudential Retirement)
ERISA Survey Finds Many Sponsors Lacking in Fiduciary Details
Excerpt: " new survey finds less than a third of retirement plan fiduciaries report a clear chain of authority for their plan's governance committee. A news release said the survey found that 58% of plan sponsors maintain minutes of meetings (down from 79% last year), 27% use an independent party to analyze plan fees (down from 45% last year), and 29% reported that they had established a clear chain of authority for their plan's governance committee (down from 41% last year)." (planadvisor)
Meeting Your Fiduciary Responsibilities: Retirement Plan Survey 2009 (PDF)
24 pages. Excerpt: "The Grant Thornton LLP, in conjunction with Plan Sponsor Advisors and Drinker Biddle & Reath LLP recently released the results of the 2009 Retirement Plan Survey, the fifth annual survey of plan sponsors of qualified retirement plans. Results are analyzed from over 270 independent plan sponsors." (Grant Thornton LLP)
[Official Guidance] Joyce Kahn, IRS Voluntary Compliance Manager, Wants Comments -- Good or Bad -- from Practitioners and Employers on the Self-Correction Program; Short Survey Request
March 20 is the last day to take the survey. Excerpt: "We are looking for feedback on the Employee Plans Compliance Resolution System. IRS Employee Plans is conducting a short, voluntary, and anonymous survey designed to gauge the relevance and usefulness of the Self-Correction Program (SCP). Your participation in this survey will greatly assist us in making our programs more responsive to the needs of plan sponsors, employees, and beneficiaries of the retirement plan system. The anonymous survey should takes less five minutes to complete. We thank you in advance for your participation and look forward to future improvements that work for you!" (Internal Revenue Service)
IRS Employee Plans FY 2009 Work Plan of Operating Priorities (PDF)
15 pages. Excerpt: "The work plan provides the strategic Operating Priorities for Employee Plans (EP) for FY 2009, as well as specific program guidance for Examinations, Rulings & Agreements and Customer Education & Outreach employees. In fulfilling EP's mission of protecting retirement plan assets and the benefits of plan participants, it is incumbent that the EP organization fosters and promotes plan sponsors compliance with the applicable Internal Revenue Code provisions. While the Determination, Voluntary Compliance and Technical Activities programs are designed to assist plan sponsors compliance with the Internal Revenue Code (IRC), EP Examinations and the EP Compliance Unit also play an integral role in ensuring compliance through their enforcement actions." (Internal Revenue Service)
[Guidance Overview] The Employee Plans Compliance Resolution System - Updated And Improved
Excerpt: "The latest IRS updates to EPCRS (Rev. Proc. 2008‑50) became effective January 1, 2009, and result in some very real improvements to the retirement plan correction system. This article analyzes three of those changes: The guidance for correcting specific qualification failures. Correction principles applicable to all types of failures. Procedures for using EPCRS." (Chang, Ruthenberg & Long PC)
[Guidance Overview] IRS's Multiemployer Plan Amortization Extension Procedures (PDF)
3 pages. Excerpt: "On November 12, 2008, the IRS issued Revenue Procedure 2008-67 to provide guidance for sponsors of multiemployer plans that want to obtain IRS approval of an amortization period extension under the rules as revised by the Pension Protection Act of 2006 (PPA). Under PPA, an amortization extension can be used to keep a plan out of 'endangered' status but cannot be used to keep a plan out of 'critical' status. The submission and notification rules described in this revenue procedure apply to all amortization period extensions requested for plan years beginning after December 31, 2007." (Prudential Retirement)
2009 Revenue Procedures for Employee Plans
Excerpt: "The IRS has updated its annual revenue procedures for employee plans: Rev. Proc. 2009-4 addresses procedures for furnishing rulings and information letters; Rev. Proc. 2009-5 discusses the process of providing technical advice on employee plan issues to IRS area managers and appeals offices; Rev. Proc. 2009-6 updates procedures for issuing determination letters on a retirement plan's qualified status; and Rev. Proc. 2009-8 lists related user fees for employee plans and exempt organizations. The revenue procedures appear in Internal Revenue Bulletin 2009-1." (Mercer LLC)
[Guidance Overview] IRS Guidance and Special Options for EGTRRA Determination Letter Cycle D Plans (PDF)
2 pages. Excerpt: "Each year, the IRS publishes a 'Cumulative List of Changes in Plan Qualification Requirements' that must be reflected in the individually-designed plan documents submitted for determination letters in the filing cycle beginning on the next February 1. The 2008 Cumulative List applies to plans submitted in Filing Cycle D. Single employer plans sponsored by employers with employer identification numbers (EINs) ending in 4 or 9 and multiemployer plans must file requests for Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) determination letters in Cycle D. The Cycle D submission period opens on February 1, 2009, and will close on January 31, 2010. In addition to listing the provisions that must be reflected in Cycle D plan documents, the 2008 Cumulative List provides some special options for Cycle D plans." (Prudential Retirement)
[Guidance Overview] Twelve Month Filing Period for Cycle D Plans Begins February 1, 2009 (PDF)
3 pages. Excerpt: "Under the IRS' staggered system for obtaining determination letters on qualified plans, individually designed plans have been assigned to one of five filing cycles, Cycle D, in which amendments related to the Pension Protection Act of 2006 will be addressed for the first time, begins on February 1, 2009 and ends on January 31, 2010." (Buck Consultants)
Procedures Updated for Furnishing of Technical Advice by EP/EO Technical Offices
Excerpt: "The IRS has issued updated procedures for the furnishing of technical advice memoranda (TAM) by Employee Plans (EP) Technical or Exempt Organizations (EO) Technical offices to EP and EO Examinations Area managers, EP and EO Determinations managers, or Appeals Area Director in the employee plans (including actuarial matters) and the exempt organizations areas. The procedure also explains a taxpayer's rights when an EP or EO Examinations Area manager, an EP or EO Determinations manager, or an Appeals Area Director requests technical advice regarding a tax matter." (Wolters Kluwer)
TE/GE Procedures for Issuing Rulings Updated
Excerpt: "The IRS has updated its procedures for employee plans (EP) and exempt organizations (EO) to obtain guidance on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division (TE/GE). The IRS provides such guidance in the form of letter rulings, closing agreements, compliance statements, determination letters, opinion letters, advisory letters, information letters, revenue rulings, and oral advice. The revenue procedure, which is effective January 5, 2009, contains the IRS's general procedures applicable to letter ruling request from employee plans and exempt organizations." (Wolters Kluwer)
[Guidance Overview] Procedures for Assessing Civil Penalties under ERISA ?502(c)(4)
Excerpt: "Effective March 3, 2009, procedures go into effect by which the Secretary of Labor can assess civil penalties against a plan administrator for the failure to provide certain PPA-required notices. Penalties are based on the 'degree or willfulness' of the failure, but may not exceed $1,000 per day for each violation. Administrators should be aware that, if served notice of assessment, they have a fixed 30-day period to show 'reasonable cause' and explain why the penalty should be reduced. Failure to respond within the 30-day period will foreclose further proceedings and cause the notice to become final and binding." (Deloitte LLP via BenefitsLink.com)
[Guidance Overview] IRS's 2009 Schedule of Employee Plan User Fees
Excerpt: "The IRS has updated its user fee schedule, effective January 5, 2009, for requests for various types of employee plan letter rulings and determination letters, and other matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division." (Wolters Kluwer)
[Guidance Overview] Updated IRS Procedures for Issuing Letter Rulings, Determination Letters, and Other Employee Plan Guidance
Excerpt: "EBIA Comment: These revenue procedures are required reading for employers and their advisers seeking plan-specific guidance from the IRS. Those new to the employee benefits arena will welcome the procedures' practical tools, including sample formats for letter ruling requests, checklists to ensure that ruling requests are complete, definitions of basic terms, user fee schedules, and descriptions of how the 2009 procedures differ from their 2008 counterparts." (Employee Benefits Institute of America)
[Opinion] Comments on IRS's Employee Plan's Compliance Unit Compliance Check Program for Pre-Approved Retirement Plan Documents (PDF)
10 pages. Excerpt: "While ASPPA understands the importance of monitoring compliance with Revenue Procedure 2000-20, the depth, timing and tone of the EPCU Program as it is currently structured is unduly burdensome on both pre-approved plan sponsors and adopting employers. The EPCU Program as presently operated could have a chilling effect on the use of pre-approved plan documents by practitioners and their clients, resulting in a significant increase in the use of individually designed documents for EGTRRA plan restatements. This would require a reallocation of IRS resources in a less productive manner." (American Society of Pension Professionals & Actuaries)
Registration Deadline Extended to Friday, January 9 for Enrolled Retirement Plan Agent Designation Exams
Examinations are now being offered for retirement plan practitioners who are not eligible to act as clients' agents pursuant to IRS Form 2848 and who seek the new IRS-blessed Enrolled Retirement Agent Designation. The examinations are being offered during 'window' periods; the first window has opened and will remain open (i.e., the exam can be taken) through a date in mid-February. Registration to take the exam during this initial window period now can be made as late as Friday, January 9, according to an announcement on January 5 (the original deadline was January 6). As of Tuesday morning the text of the ERPA web site had not been updated to reflect the extension but practitioners can follow our hypertext link for immediate registration and more information. (American Institute of Retirement Education, a Partnership of ASPPA & NIPA)
[Guidance Overview] Cycle C Retirement Plan Determination Letter Applications Are Due by February 2, 2009
Excerpt: "[The IRS has granted a brief extension because the] Jan. 31 deadline under Rev. Proc. 2007-44 falls on a Saturday in 2009. . . . The IRS notes that although Feb. 2 is Groundhog Day, applicants will not be permitted 'unlimited do-overs as in the movie by the same name.' No comment from Punxsutawney Phil." (Mercer LLC)
Fact Sheet: EBSA Achieves Nearly $12 Billion in Total Monetary Results in Last Eight Years
Excerpt: "In FY 2008, [the Employee Benefits Security Administration] closed 3,570 civil investigations, with 2,696 (75.52%) resulting in monetary results for plans or other corrective action. Since 2001, EBSA has closed 32,338 civil cases, with more than two-thirds (68.31%) resulting in monetary results or corrective action." (U.S. Employee Benefits Security Administration)
Cycle C Determination Letter Deadline is Groundhog Day
Excerpt: "For those who end up waiting until the last minute to file a Cycle C determination letter application, the IRS has these words in their latest Employee Plan Newsletter . . . ." (Attorney B. Janell Grenier via Benefitsblog.com)
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