What triggers an audit? Plans are typically selected from filed returns such as Form 5500s, but for plans that don’t have to file returns, the IRS downloads data from W-2 employer’s report and look for things such as exceeding contribution limits. However, the agency often randomly selects plans among different types of sponsors and different industries. Daniel S. Gardner, Senior Employee Plan Specialist for Tax Exempt and Government Entities, Internal Revenue Service, described what the IRS is looking for – and has found – when auditing 403(b) plans. Continue reading »
On Wednesday, Dec. 15th, the Senate passed the “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010” (“2010 Tax Relief Act” or “Act”) and the House of Representatives passed it the next evening. Continue reading »
President Obama announced on Monday, December 6th that he had reached a framework agreement with Republican leaders in Congress regarding the extension of the individual income tax cuts. Recent media reports indicate that White House officials will try to persuade Democrats to support the framework agreement, but due to resistance from his party, President Obama may need to rely heavily on Republican support to move the proposal through Congress.