Flyboyjohn Posted May 6, 2018 Report Share Posted May 6, 2018 Anybody have experience with an IRS audit of a cafeteria plan for compliance with section 125 non-discrimination testing? Doesn't seem to be something IRS has much interest in. Thanks Link to comment Share on other sites More sharing options...
Luke Bailey Posted May 7, 2018 Report Share Posted May 7, 2018 The issue comes up for me far more often in M&A transactions, where acquirer will question compliance. Chaz 1 Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
Larry Starr Posted May 7, 2018 Report Share Posted May 7, 2018 Unless things have changed drastically from when I developed the cafeteria plan training material for ASPPA, there is no one at IRS who has responsibility for these audits. The only time they seem to happen is when a major company (like, I believe, J.C. Penny) gets audited and then they have specialty auditors who look at everything. I think it was Penny that got in trouble years ago for having an employee pre-tax health insurance (which would be a cafe plan) but never actually adopted the plan. Cost them a fortune as I remember. Luke is right: where you see this as an issue is in the due diligence involved in M&A work more than anywhere else. Chaz 1 Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now