IRS Begins Pilot Program for Qualified Retirement Plan Examinations

In an effort to reduce taxpayer burden as well as time spent by the Internal Revenue Service (IRS) on retirement plan examinations, the IRS announced its Employee Plans function is piloting a pre-examination retirement plan compliance program, which began in June 2022.

Retirement plan sponsors that have been selected to participate in this pilot program will receive a notification letter and be given 90 days to review their plan’s document and operations to determine whether current tax law requirements are being met. If the IRS does not receive a plan’s response within 90 days, the IRS will contact the sponsor to schedule an examination.

If mistakes in the plan’s documents or operations are found during the sponsor’s review, a self-correction may be possible via the voluntary compliance program (VCP). Mistakes that cannot be corrected with the VCP may be addressed by requesting a closing agreement and, if accepted, a fee established by the VPC will be determined and paid under the closing argument. If the IRS is in agreement with the self-corrections, a closing letter will be issued. If the IRS is not in agreement with the self-corrections, a full or limited-scope examination will be conducted.

For more information, contact Diane Straka, CPA, Partner/Tronconi Segarra & Associates Small Business Department at 716.633.1373 or


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