Retirement plan sponsors should be aware of a new Internal Revenue Service IRS pilot program, which permits plan sponsors to conduct a pre-examination check-up of retirement plan administration before the IRS begins a plan examination.
Under the IRS Employee Plans Compliance Resolution System (EPCRS), as set forth in Revenue Procedure 2021-30, a plan that has been notified of an impending audit cannot remedy issues.
Attorneys say plan sponsors have a couple of strong incentives to identify and correct any compliance failures upon receiving a pre-audit letter under a new IRS program.
The IRS announced in its June 3 Employee Plans Newsletter a new 90-day Pre-Examination Compliance Pilot Program. Under the program, which is in effect, the IRS will notify an employer.