IRS Outlines Effort to Obtain Complete Info From Plans

By ASPPA Net Staff • January 26, 2016 • 0 Comments

The IRS has updated the information it provides concerning the data analysis verification projects its Employee Plans Compliance Unit (EPCU) is pursuing.

The IRS says that a review of Form 5500 Series returns showed that on some of the forms filed, the pension feature code(s) were missing, inconsistent or incomplete on Line 8a of the Form 5500, line 9a of the Form 5500-SF, and Form 5500-EZ line 8 for plan years ending in 2012 and later.

The IRS says that it will correspond with the sponsors of the identified plans. The letters will:

  • ask them for information regarding which pension feature codes apply to their plans by annotating the appropriate codes on a list included with our correspondence;
  • inform them about how to amend their returns to include pension feature codes; and
  • identify other information that may be missing from the forms, such as business codes and total participant counts.
Filers who receive letters should:

  • review their Form 5500, 5500-SF or 5500-EZ;
  • select the correct codes for the plan;
  • file an amended return, with complete information, with the Department of Labor (Forms 5500 or 5500-SF) or the IRS Service Center (Form 5500-EZ).
The IRS suggests that filers review their entire return for accuracy and other omitted items that should be addressed and corrected.

The IRS says that its primary goal is to ensure that it has useful and complete information, as well as identify the underlying causes for missing items and make recommendations to improve its systems.