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jireh87

IRS Audit-CAP Requirement

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 I have a client whose SEP Plan was recently audited by the IRS resulting in corrective contributions to employees.  As part of the closing agreement, the IRS wants the client to adopt a prototype SEP plan document and also provide notice to employees of their benefits.  Anyone know where I can find a sample notice letter?  Just want to make sure I don't leave anything (important) out.  Thank you!

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I don't have a sample notice specific to that, but usually I try to include the things mentioned in the EPCRS revenue procedure. 
Usually the format is something like:

Date
To: Participant in XYX
From: Plan Sponsor
Re: XYZ 

{Information about what is required - e.g. there is a SEP plan and sometimes employees are required to share in employer contributions}
{Information about the failure - Contributions weren't made to accounts }
{Information about the correction - opening accounts, depositing corrective amounts etc}
{Other required information - for example in a 401(k) usually a mention about a right to change deferrals if there is a deferral error, or disclosure that plan information is available on paper upon request, etc)

For more information contact 
NAME of PERSON
Name of Company (usually sponsor)
PHONE NUMBER
E-mail address
Address

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Thank you! That's about what I've written so far. Just needed to make sure I wasn't missing anything else.  Have a fantastic day!

 

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