The IRS recently sent 1,200 employers detailed questionnaires on their 401(k) plans. Information gathered from the questionnaires will be used to determine:
(1) potential compliance issues, (2) any plan operational issues, and (3) additional education and outreach guidance that may be helpful for the IRS to make available to plan sponsors to improve compliance.
The questionnaires contain approximately 70 questions, which must be answered carefully and accurately online. If the answers to the questions raise compliance concerns or if a taxpayer simply fails to respond, a plan audit could result.
