IRS Audits Plan Sponsors Who Didn't Complete 401(k) Questionnaire

Posted by Aaron Juckett, CPA, CPC, QPA, QKA on Mon, Nov 28, 2011
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In 2010 the IRS announced an online 401(k) Compliance Check Questionnaire.  It was considered a plan compliance check and failure to complete it would result in further action.  In Retirement News for Employers – Fall 2011 Edition the IRS stated that 95% of those contacted completed the surveys, and that they did indeed initiate examinations on sponsors who didn’t complete the questionnaire: 

Over 95% of the 1,200 plan sponsors contacted by the Employee Plans Compliance Unit voluntarily completed the online questionnaire. We initiated examinations on the plans of sponsors who didn't answer the questionnaire and collected the questionnaire data during the examination.

We’ll post an interim report soon to We’ll complete the final report by the end of FY 2012 and announce when it’s posted on our website.

We'll use the questionnaire data to improve our web-based tools and guidance, including the Employee Plans Compliance Resolution System. We’ll also use the data to enhance our compliance strategies, improve voluntary compliance through education and outreach efforts and, where appropriate, expand enforcement activities.

Topics: Compliance

Aaron Juckett, CPA, CPC, QPA, QKA
Written by Aaron Juckett, CPA, CPC, QPA, QKA

Aaron is President and Founder of ESOP Partners and provides implementation, administration, and consulting services to hundreds of companies. He is a member of The ESOP Association (TEA) and the National Center for Employee Ownership (NCEO).

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