IRS Newsletter Announces Pending Hiring of Additional Auditors:

On October 7, 2021 the IRS published its “Tax Exempt & Government Entities (TE/GE) Fiscal Year 2022 Program Letter.” Retirement plan sponsors will likely be most interested in the following excerpts:

  • “In fiscal year 2022, we expect to invest in new resources to expand outreach to the exempt sector as well as increase our enforcement staff.”
  • “After almost a decade of decline in the size of TE/GE’s workforce, fiscal year 2022 will be a year of significant growth, with most new hires assigned to enforcement duties.”

Based on those IRS statements, plan sponsors may wish to consult with their advisors to discuss their retirement plan document, their plan’s administration, and correcting any compliance issues. That will help to ensure that the IRS does not find issues that have not been addressed. When the IRS finds such issues, tax penalties assessed to the plan sponsor can be severe.