TAX NEWS - DECEMber 2009

LESE - Learn, Educate, Self-Correct and Enforce Projects Completed

EP recently completed two examination projects using "LESE," a compliance initiative started in FY 2007 to test and measure retirement plans' compliance levels. "LESE" stands for:

- Learn: Discover all we can about the retirement plan compliance issues using small examination case samples.
- Educate: Let the targeted groups know what we learned and what we expect them to do to correct errors, usingoutreach and the Employee Plans Compliance Unit's soft contact notices.
- Self-Correct: Give those groups the chance to correct their plan errors using the Employee Plans ComplianceResolution System by offering correction methods through outreach activities and soft contact notices.
- Enforce: Re-examine the groups, taking a firm position with those who have not corrected.

Project results and findings from completed LESE projects are now available:
1. Defined contribution plans with less than $250,000 in assets, and
2. Top-heavy 401(k) plans.

Form 5500 returns are randomly selected based on "judgment sampling" for LESE examinations. Various sources (revenue agents, media, Customer Education and Outreach, Rulings and Agreements, etc.) help the Director of Employee Plans and the Director of Employee Plans Examinations by providing information for possible examination selection. EPanalyzes the information for trends or potential issues.