A Running Start: IRS Pilots New Pre-Examination Program

Matthew P. Chiarello • June 22, 2022

The Employee Plans Office of the Internal Revenue Service (the “IRS”) announced a new pre-examination program for retirement plans to begin as of June 2022.  The pilot program is designed to reduce the amount of time and resources the IRS expends on plan audits, while affording plan sponsors the opportunity to identify and correct errors.

Under the program, the IRS will send plan sponsors 90-day advance notice that their retirement plan has been selected for examination.  The plan sponsor is permitted 90 days to self-audit its plan documents and operations.  Failures identified by the plan sponsor may be self-corrected using the Employee Plans Compliance Resolution System (“EPCRS”).  If a failure is ineligible for self-correction under EPCRS, the plan sponsor can request a closing agreement from the IRS.  The IRS will apply the Voluntary Correction Program fee schedule with respect to this review, which can be more favorable than the fees under the IRS Audit Closing Agreement Program.

The plan sponsor must report the findings of its self-audit to the IRS.  Based on its review of the plan sponsor’s conclusions, the IRS will issue a closing letter or conduct a limited or full scope examination.  Failure to answer the 90-day advance notice will trigger an examination.

More information about the pre-examination pilot program can be found here.

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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