Alloy Alert - IRS 401k Compliance Check
The IRS recently announced that at the end of this month they intend to send a questionnaire to a small sampling of 401(k) retirement plans. The IRS is calling the questionnaire a "compliance check." While this questionnaire is not technically an audit of the 401(k) plan, the IRS could use the information to open an audit of the plan. It is also possible that failure to respond fully and in a timely fashion could result in an audit. Moreover, the IRS has stated specifically that failure to complete the questionnaire will result in further enforcement action. It is fully understandable that you may find the thought of receiving an IRS questionnaire intimidating and that the questions asked may be beyond the scope of your retirement plan knowledge. We suggest that you contact us if you receive the questionnaire and need help responding.
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