Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance June 23, 2010
360 Sponsors at least Partly Done on IRS 401(k) Survey
June 23, 2010 (PLANSPONSOR.com) – Some 360 of the 1,200 plan sponsor receiving the 401(k) Compliance Check Questionnaire had at least partially completed the document by mid-June, the Internal Revenue Service (IRS) announced.
Reported by Fred Schneyer
The tax agency said it intended to use the resulting data from the questionnaires to “make future audits more productive and focus on necessary education, outreach, guidance and enforcement efforts.”
Answers to questions the IRS said it has received regarding the data collection effort include:
- Sponsors can designate someone else to fill out the questionnaire, but have to fill out Form 2848, “Power of Attorney and Declaration of Representative” if someone else will be communicating with the IRS about the survey.
- If the IRS letter accompanying the questionnaire specifies the 2007 plan year but the instructions ask for 2008 plan year information, sponsors should use data as of the end of the 2008 plan year unless the question specifically lists the 2006, 2007 and 2008 years. If it does, the sponsor should provide data for all three years.
- If a sponsor becomes aware of a qualification failure when filling out the survey, it can either self-correct or submit an application under the IRS Voluntary Correction Program. For more information on the program, go to http://www.irs.gov/retirement/article/0,,id=96907,00.html.
More information about the questionnaire is at http://www.irs.gov/retirement/article/0,,id=223440,00.html.