On June 3, 2022, the IRS announced a new pilot pre-examination compliance program for retirement plans beginning in June 2022. Under the new program, the IRS will send letters to plans advising them that they have been selected for an examination and will have a 90-day window to self-review the plan’s documentation and operation to determine if they meet current tax law requirements. If the plan does not respond within 90-days, the IRS will audit the plan. If self-review reveals non-compliance, the plans will be able to self-correct the mistakes using the correction principles in the IRS voluntary compliance program (EPCRS). EPCRS’s self-correction program will be available. If a mistake cannot be self-corrected, an IRS closing agreement under EPCRS will be available based on the voluntary compliance program (VCP) fees rather than the normal closing agreement fees. If the plan does respond within 90 days, the IRS will review the submitted documentation, determine whether it
Update: The OLMS will not seek to enforce the filing of the Form T-1 for one year from the original due date. Office of Labor-Management Standards (OLMS) published a final rule on May 30, 2019 establishing a Form T–1 Trust Annual Report which requires annual reporting by Form LM-2 filing labor organizations on financial information pertinent to “trusts in which a labor organization is interested”. On March 29, 2021, the Office of Labor-Management Standards (OLMS) released News 01-2021 – Notice of a non-enforcement policy in connection with an intended rulemaking to rescind the Form T-1 Trust Annual Report. Follow this link for our client bulletin: Non-enforcement Policy Bulletin Please contact us for additional information