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Compliance July 5, 2011
IRS Reaches Agreement with Millennium Plan
July 5, 2011 (PLANSPONSOR.com) - The Internal Revenue Service announced that it has reached an agreement with the Millennium Multiple Employer Welfare Benefit Plan (Millennium Plan).
Reported by PLANSPONSOR staff
The Millennium Plan is presently the subject of a bankruptcy proceeding. Under the agreement reached with the IRS and the terms of the Order Confirming Modified Plan dated June 16, 2011, the Millennium Plan will terminate its operations, liquidate its assets and distribute approximately $80 million in assets to individual participants.
According to the announcement, the agreement with the IRS resolves certain issues relating to an IRS investigation into the design, marketing, operation and management of the Millennium Plan. The agreement with the IRS also provides a procedure for resolving hundreds of income tax and penalty examinations of employers and employees who participated in the Millennium Plan.
Finally, the agreement with the IRS addresses tax issues relating to the liquidation of the Millennium Plan, including information reporting and income tax withholding requirements.« PSNC 2011: Is Your Plan Ready for a Retirement Income Option?