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IRS TE/GE

IRS TE/GE. EMPLOYEE PLANS TEAM AUDIT. EMPLOYEE PLANS TEAM AUDIT. History and Background Key Features. EP Team Audit Program Glossary of Terms. TE/GE = Tax Exempt/Government Entities EPTA = Employee Plans Team Audit LMSB = Large and Mid-Sized Business EO = Exempt Organizations

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IRS TE/GE

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  1. IRS TE/GE EMPLOYEE PLANS TEAM AUDIT

  2. EMPLOYEE PLANSTEAM AUDIT History and Background Key Features

  3. EP Team Audit ProgramGlossary of Terms • TE/GE = Tax Exempt/Government Entities • EPTA = Employee Plans Team Audit • LMSB = Large and Mid-Sized Business • EO = Exempt Organizations • MAP = Multi-Employer Plans • CIS = Case Identification Specialist • IDR = Information Document Request

  4. EP Team Audit ProgramHistory and Background Approximately 4,500 IRC 401(a) Qualified Plans have 2,500 or more participants • They represent less than 1% of 690,000 such plans • They hold about 60% of total plan participants • They hold about 70% of total plan assets (Multi-employer, 403(b), & 457 plans yield similar results.)

  5. EP Team Audit ProgramHistory and Background Developed Processes and procedures for: • Specialized Training • Case identification • Case selection • Examination

  6. EP Team Audit ProgramHistory and Background Partnering with TE/GE Area Counsel: • EPTA “Notice of Examination” letter does not trigger the running of the 15 day period of Rev. Proc. 94-69 if a discrepancy adjustment results • Clarified that an EPTA “stand alone” audit does not start the EO or LMSB audit and will not require a closing letter

  7. EP Team Audit ProgramHistory and Background Specialized Training: • Conducting Conferences • Constructing The Audit Plan • Constructing Administrative Record • Principles of Statistical Sampling • Computer Audit Assisted Examinations • Intermediate and Advanced Access database • Conversion To Cash Balance Plans • Schedule M-1 Reconciliation

  8. EP Team Audit ProgramKey Features • EPTA provides support to LMSB and EO • EPTA conducts audits in coordination and conjunction with LMSB and EO • EPTA conducts stand-alone audits of LMSB and EO clients • Each group includes both MAP and 403(b) agents.

  9. EPTA Staffing Chart

  10. EPTA Team Audit Program – Audit Coverage

  11. EP Team Audit ProgramKey FeaturesCase Selection • Identification Criteria • Number of participants in plan(s) • Gross assets in plan(s) • Contributions to plan(s) • Number of plans of the employer/controlled group • Number of controlled or related entities

  12. EP Team Audit ProgramKey Features Case Selection • Selection Criteria • Points from identification criteria • National impact • Impact on plan participants • Emerging issues • Referral information • Field Input

  13. EP Team Audit ProgramKey Features Case Selection Committee: • 3 Area Managers • 3 EPTA Case Managers • EPTA National Coordinator • EPTA CIS (non-voting member) • Large Case Reviewer (non-voting member)

  14. EP Team Audit ProgramKey Features Critical Stages of the Team Audit: • Pre-Examination Planning • Engagement • Conducting the EPTA Examination • Closing the Issues/Post-Audit Critique

  15. QUESTIONS ?Contact:Mark Hoffman @mark.d.hoffman@irs.govTelephone number (651) 312-7740

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