The IRS' employee plan team audits program will audit 10 to 15 large pension plans a year, according to a Segal Co. memo to clients. The IRS defines large plans as those with more than 2,500 participants.
Under the EPTA program — set up as a pilot program in October 2001 and made permanent last October — the IRS will conduct intensive reviews of pension plans to determine whether they are operating in accordance with the provisions of the plan's documents, and complying with all pertinent regulations. The program may also include an examination of the employer's tax returns to ensure that deductions correspond to contributions, as well as a review of the plan's investments to ensure they are appropriate and properly accounted.
