Those who have been non compliant of with their Qualified plans beware! The Internal Revenue Service has finally become more adept at identifying retirement plans that may violate tax laws, according to a new government report.
The Treasury Inspector General for Tax Administration has found that the IRS has improved its process for selecting potentially noncompliant retirement plans for examination. This has resulted in an increase in the percentage of examinations where the IRS detects noncompliance with the Tax Code.
The IRS examines retirement plans to determine whether the plans are operating in accordance with the tax-exempt qualification provisions of the Internal Revenue Code and within the terms of the plan document. If a retirement plan is not in compliance, the IRS works with retirement plan officials to resolve examination issues and make the plan compliant.
This is one way the IRS helps individuals. These examinations help to ensure that retirement plan participants receive the benefits the plan promises.