Retirement plans come under new IRS scrutiny
Business News Update
Businesses should be aware that the Internal Revenue Service is increasing its examinations of companies retirement plans.Pensions, profit-sharing plans and 401(k)s are all on the agenda.Corporate pension has always been a target of the IRS, but they are now looking for bigger fraud. The agency no longer appears to look at all aspects of a given plan.Instead, IRS agents now focus more on plan documents and internal controls (plan documents are examined to make sure they are current).  Agents then focus on whether employers are properly handling various duties, including notifying workers of eligibility, matching employee contributions [in the case of 401(k) plans], calculating traditional benefits, investing, vesting workers and distributing benefits.  By utilizing this somewhat streamlined approach, the IRS hopes to audit about 25 percent more plans this year than last. With consideration to circumstances and magnitude, those companies that are not in compliance could face charges
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