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Volume XII, Number 272

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New IRS Pre-Examination Compliance Pilot for Retirement Plans

On June 3, 2022, the IRS announced that it is establishing a new pre-examination retirement plan compliance program beginning this month. This program will notify a plan sponsor by letter that their retirement plan was selected for an upcoming examination/audit. The letter will give the plan sponsor a 90-day window to review its plan documents and operations to determine if they meet current tax law requirements. If a recipient of the letter does not respond within 90 days, the IRS will contact the recipient to schedule an exam.

Mistakes found that qualify for the Self-Correction Program under the Employee Plans Compliance Resolution System (EPCRS) can be corrected in that manner during that 90-day period. For items that don’t qualify, the plan sponsor can request remediation through a closing agreement with the IRS. The IRS will review documentation and either issue a closing letter or conduct a limited or full scope examination. The goal of the pilot program is to reduce taxpayer burden and reduce time spent on qualified plan examinations. 

The duration of the pilot was not specified, but the IRS will evaluate its effectiveness and determine if the program will become part of their overall compliance strategy. 

Copyright © 2022 Robinson & Cole LLP. All rights reserved.National Law Review, Volume XII, Number 157
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About this Author

Bruce Barth Benefits lawyer Robinson Cole
Partner

Bruce Barth, chair of the firm's Labor, Employment, Benefits + Immigration Group, as well as the firm’s Employee Benefits + Compensation Team, focuses his practice on the representation of employers and fiduciaries with respect to retirement and welfare benefits, executive compensation, and benefits issues in corporate transactions.

Employee Benefits

Bruce advises clients on the implications of tax, securities, labor, and other laws, including the Employee Retirement Income Security Act (ERISA). Drawing from over 30 years of employee...

860.275.8267
Virginia E. McGarrity Benefits lawyer Robinson Cole
Partner

Virginia McGarrity is a member of the firm's Employee Benefits + Compensation Group, counseling employers, insurance carriers, and service providers on a wide range of complex employee benefits and executive compensation matters.

Retirement Plan Design and Administration

Virginia’s practice addresses a broad array of issues relating to the design, drafting, and operation of qualified and nonqualified defined benefit and defined contribution plans, including 401(k), profit-sharing, multiemployer, employee stock ownership and Section 403(b) and 457(b) plans of...

860.275.8291
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