IRS audit

[Belgarath]

Just fyi - had a random audit come up on a small plan - everything clean so no issues. The IRS did ask for GUST docs and subsequent amendments, even though it was an audit for 2012 Plan Year.

I have to grumble a little bit - I know they can ask for anything they want, but it just seems a little obnoxious to ask for documents going back 10 years prior to the audit year. Grumble, grumble.

Oh well...

[12AX7]

No too unusual on my end. I'm always asked for GUST docs and forward.

[ESOP Guy]

While I agree it is normal I also think it is an abuse of the statute of limitation rules. I get it if they didn't have those amendments in place the plan is still disqualified. But that is true of any restatement. I work with ESOPs that have been around since the early '80s. If the TEFRA/DEFRA/REA (I think I got that alphabet soup right) restatement wasn't done the plan is in theory disqualified. Should they be able to ask for 30 year old plan documents? I guess the reply is people should keep their records forever but that is part of the reason one has statute of limitation rules. Things get old and records become less reliable or lost.

[BG5150]

Well, the EGTRRA restatement didn't take affect until 2008 at the earliest. In 2007, the GUST doc was in effect.

[Lou S.]

While I agree it is normal I also think it is an abuse of the statute of limitation rules. I get it if they didn't have those amendments in place the plan is still disqualified. But that is true of any restatement. I work with ESOPs that have been around since the early '80s. If the TEFRA/DEFRA/REA (I think I got that alphabet soup right) restatement wasn't done the plan is in theory disqualified. Should they be able to ask for 30 year old plan documents? I guess the reply is people should keep their records forever but that is part of the reason one has statute of limitation rules. Things get old and records become less reliable or lost.

Yes. Plan sponsor is required by ERISA to retain these.

In practice if you have an actual DL (as opposed to letter on prototype or VS) they will generally only ask for documents subsequent to DL.

We are going through as similar audit on a 2011 PYE and they too asked for everything back to GUST.

[ETA Consulting LLC]

Typically, they'll go back two restatement cycles. When the PPA restatement deadline ends, you should expect to be asked for EGTRRA documents.

Good Luck!