Headlines about "Ret plans - audits by gov't agencies"
Gathered from the web by the editors at BenefitsLink.com.
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)
EBSA Semiannual Regulatory Agenda Addresses Plan Assets
Excerpt: "The Employee Benefits Security Administration (EBSA) has released its semiannual regulatory agenda for Fall 2008, which outlines regulations that have been selected for review or development during the next year, as well as any regulations that have been finalized during the last six months." (Wolters Kluwer)
[Guidance Overview] 2008 Cumulative List of Changes in Plan Qualification Requirements for Cycle D Plans
Excerpt: "All sponsors of Cycle D plans and their advisors should carefully review the 2008 Cumulative List to ensure that their submissions address the issues the IRS has specifically identified for review in the determination letter process. While most of the 'new' items applicable to 401(k) plans relate to PPA changes that were separately listed (but not required) in prior lists, the 2008 Cumulative List adds recent PPA guidance that will need to be taken into account as well. Of course, to be qualified, plans must comply with all relevant qualification requirements, even those that are not on the list." (Employee Benefits Institute of America)
[Official Guidance] Listing of IRS Published Guidance for January - November 2008
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
[Guidance Overview] The Employee Plans Compliance Resolution System: An Overview for Governmental Plans (PDF)
6 pages. Excerpt: "This research memorandum summarizes IRS guidance related to its programs for correcting retirement plan qualification errors, including the Self-Correction Program, the Voluntary Correction Program, and the Audit Closing Agreement Program." (Gabriel Roeder Smith & Company)
[Guidance Overview] IRS Releases Cumulative List for Cycle D Plans
Excerpt: "This Cumulative List states that the IRS, when reviewing determination letter applications for Cycle D plans, will not consider any: '(1) guidance issued after October 1, 2008; (2) statutes enacted after October 1, 2008; (3) qualification requirements first effective in 2010 or later; or (4) statutory provisions that are first effective in 2009, for which there is not guidance identified in this notice.'" (Pension Protection Act Blog)
GAO's Recommended Improvements to EBSA and PBGC
Excerpt: "The U.S. Government Accountability Office (GAO) has issued recommendations for improving the monitoring and enforcement of pension laws and regulations by the Labor Department's Employee Benefits Security Administration (EBSA) and has recommended ways for the Pension Benefit Guaranty Corporation (PBGC) to improve its financial stability." (Wolters Kluwer)
[Opinion] Vanguard Comments on DOL's Proposed Participant Advice Regulations
Excerpt: "Vanguard has filed a Comment Letter that expresses our support of Department of Labor (DOL) efforts to encourage flexible defined contribution participant advice programs. The letter also seeks clarification on the annual audit rules." (The Vanguard Group, Inc.)
[Opinion] Groom Attorneys Comment on Governmental Plan Determination Letter Issues (PDF)
2 pages. Excerpt: "The IRS has indicated that it is considering changing the period during which governmental tax-qualified plans may submit determination letter applications. David Powell and David Levine have submitted comments to the IRS addressing this potential change to the determination letter process." (Groom Law Group)
[Guidance Overview] How IRS Correction Program Updates Affect You
Excerpt: "The IRS recently updated the Employee Plans Compliance Resolution System (EPCRS) correction program for plan sponsors. . . . EPCRS allows plan sponsors to correct certain errors in employee retirement plans, in some instances without having to notify the IRS. Correcting plans in this manner affords you certain advantages, including maintaining tax-favored status and protecting your employees' and retirees' retirement benefits. This Regulatory Brief can help you realize those advantages, as well as implement practices and procedures to help ensure that your plan complies with the laws and regulations." (The Vanguard Group, Inc.)
The IRS Pays a Call on Public Retirement Plans (PDF)
2 pages. Excerpt: "To better understand the difficulties these plans face complying with federal tax requirements, the IRS is going to survey a select group, fewer than 40 government plans. A more comprehensive survey is scheduled to go out later this fall to approximately 200 plans, based on results obtained in the pilot survey. A public report is to be issued by year end. Survey respondents are being assured that any noncompliance issues identified will not result in an IRS examination; instead, respondents will be given directions on how to correct any issues that exist." (Milliman)
[Guidance Overview] IRS Considering Modifying Determination Letter Process for Governmental Plans (PDF)
2 pages. Excerpt: "In 2005, the IRS revised its determination letter process to implement a staggered 'cycle system' under which the deadline for filing an IRS determination letter application generally varies based on the last digit of an employer's employer identification number (EIN). One exception to this EIN-based system was that governmental tax-qualified plans were all assigned to Cycle C, which is currently scheduled to end January 31, 2009. In recent months, significant concerns have been raised about governmental plans' ability to comply with the January 31, 2009 Cycle C determination letter deadline." (Groom Law Group)
[Guidance Overview] DOL's Addition of Online Payment Option to DFVC Program Penalty Calculator
Excerpt: "To make its online penalty calculator more convenient, the DOL has announced a new feature that allows employers and plan administrators the option to pay DFVC Program penalties electronically with a credit or debit card. Payments are processed using the Treasury Department's pay.gov financial management system. Users of the online penalty calculator are automatically offered the electronic payment opportunity after their penalty is calculated. Instructions for the new electronic payment feature appear on the same web page as the instructions for the penalty calculator." (Employee Benefits Institute of America)
[Guidance Overview] IRS's Priority Guidance Plan
Excerpt: "The IRS has updated its priority guidance plan. This plan lists the items on which the IRS and Treasury intend to provide guidance by June 30, 2009. There are more than 35 items affecting various retirement plan vehicles." (SunGard)
Is the IRS Becoming Less Kind and Gentle in Audit Resolutions?
Excerpt: "This is a special edition of our Technical Update series. We are reprinting a recent 'Ferenczy Flash' sent by Ilene Ferenczy to her clients reporting on her recent experience in handling an IRS audit." (SunGard)
[Opinion] 'We're from the Federal government, and we're here to help.' (PDF)
Page 2 of 4 pages. Excerpt: "The IRS is concerned that it has not dedicated the time and effort to the governmental plans area that our size and importance warrant. It wants to make amends by ensuring that governmental plans have the tools they need to comply with the law, and that worker retirement benefits are protected. The agency is worried, however, that it doesn't know enough about public plans to draw any conclusions as to plan concerns or needs. It, therefore, has decided to conduct a survey . . . ." (National Council on Teacher Retirement)
[Guidance Overview] Recently Revised IRS Correction Program Offers Retirement Plan Sponsors Incentives To Correct Plan Errors Voluntarily
Excerpt: "EPCRS is designed to offer plan sponsors incentives to identify and correct plan errors voluntarily. Correcting errors in accordance with EPCRS can help a plan sponsor avoid the loss of the tax-favored status of a plan and the imposition of significant monetary penalties that might otherwise be imposed if the error was discovered by the IRS on audit. There are three distinct components of EPCRS: (i) the Self-Correction Program ('SCP'); (ii) the Voluntary Correction Program ('VCP'); and (iii) the Audit Closing Agreement Program ('Audit CAP')." (Bond, Schoeneck & King, PLLC)
[Guidance Overview] IRS FAQs Regarding Governmental Plan Determination Letters (PDF)
Page 1 of 6 pages. Excerpt: "Among other items, the FAQs clarify that the plan documentation submitted with the determination letter request does not have to be in 'restated form.' Generally, the IRS requires a plan be submitted as a single, restated plan document in order to facilitate their review. However, in the FAQs, the IRS recognized governmental plans may not have a single document. Therefore, plan sponsors will be allowed to submit the applicable statutes and other relevant material, provided the information is organized in a way that allows IRS reviewers to determine whether plan provisions meet the qualification requirements." (Gabriel, Roeder, Smith & Company)
[Guidance Overview] Webcast on Employee Plans Compliance Resolution System - Revenue Procedure 2008-50 (PDF)
46 pages. Powerpoint presentation. (Morgan, Lewis & Bockius LLP)
[Guidance Overview] Enrolled Retirement Plan Agent Program
Excerpt: "The IRS has announced the opening of the program which allows individuals to obtain the ERPA designation. An individual who has obtained the ERPA designation will be able to represent taxpayers before the IRS with respect to the following programs and issues: Determination letters; Plan corrections under the employee plans correction resolution system (EPCRS); Master and prototype and volume submitter programs; Form 5500 issues." (SunGard)
[Guidance Overview] Long-Awaited Update to Employee Plans Compliance Resolution System
Excerpt: "Rev. Proc. 2008-50 retains the basic structure and operation of [the Employee Plans Compliance Resolution System], but adds several new correction methods for common plan qualification failures and makes numerous, mostly liberalizing, technical and procedural changes." (Deloitte via BenefitsLink.com)
DOL Tool Makes It Easier to Pay Fines
Excerpt: "The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has unveiled new online tools for employers and for workers. Plan sponsors and plan administrators will now find it easier to pay online civil penalties for delinquent filings of annual reports under the agency's Delinquent Filer Voluntary Compliance Program (DFVCP). . . . Employers and plan administrators can access the new feature that allows them to electronically pay civil penalties at http://www.dol.gov/ebsa/calculator/dfvcpmain.html." (PLANSPONSOR.com; free registration required)
[Guidance Overview] IRS Refines its Fix-It Program — The Employee Plan Compliance Resolution System — in Revenue Procedure 2008-50 (PDF)
Pages 4-5 of 7 pages. Excerpt: "The three components of EPCRS have not changed: (1) the Self-Correction Program (SCP); (2) the Voluntary Correction Program (VCP), and (3) the Audit Closing Agreement Program (Audit CAP), but the Revenue Procedure makes a number of modifications to those programs, which are briefly highlighted [in the target paper]." (Miller & Chevalier Chartered)
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