Tax Exempt and Government Entities issues FY 2017 EP accomplishments

The IRS has released the Tax Exempt and Government Entities (TE/GE) report on fiscal year (FY) 2017 accomplishments, which includes actions taken by Employee Plans (EP). The report covers EP examinations, compliance checks, determinations, voluntary compliance, and EP Technical.


For FY 2017, EP completed 6,487 examinations, consisting of specialty programs (1,687), traditional casework (3,486), and focused supplemental work (1,314). The specialty programs included EP Team Audit (EPTA)/Large Case, multiemployer plans, IRC 403(b)/457 plans, cash balance plans, hybrid 401(k) plans (such as those with the age-weighted new comparability feature), and leveraged/non-leveraged employee stock ownership plans.
The traditional casework consisted of a variety of plan types (profit-sharing, money purchase, and defined benefit) from within the risk-based audit program, as well as taxpayer and interagency referrals, 401(k) plans, claims, reported funding deficiencies, and non-bank trustee investigations. Focused supplemental work encompassed project work supplemented by the Emerging Issues program, the Learn, Educate, Self-correct, Enforce (LESE) program, the Individual Retirement Arrangement (EPs, SAR-SEPs, SIMPLES) program, and the Form 5500-EZ (one participant plan) program.

Compliance checks

Through the Employee Plans Compliance Unit (EPCU), EP identified areas of non-compliance in plan form and operation through compliance check contacts and continued with its mandated programs: (1) collection of multiemployer certifications and validations; (2) review non-bank trustee’s notifications; and, (3) review pension plan funding for funding deficiencies. During FY 2017, 3,564 compliance checks were initiated and 3,768 compliance checks were closed.
Projects conducted in FY 2017 included:

  • SIMPLE plans,
  • Merger/consolidations/transfers/spinoffs relating to Form 5310A filings,
  • Issues surrounding terminated/partially terminated plans,
  • Inflated assets and/or unusual investments,
  • SEP plan issues including coverage of employees, and
  • 403(b) plan document requirements.

EP Determinations

Individually Designed Plans (IDP) Program. Case receipts for the EP Determinations IDP program for FY 2017 was 4,680, consisting of 3,553 for individually designed plans — Form 5300, 909 for terminations — Forms 5310 and 5316, and 218 for adopters of modified volume submitter plans — Form 5307. Case closures totaled 10,024 for FY 2017.
Pre-Approved Plan (PAP) Program. For the EP Determinations PAP program, case receipts for FY 2017 were 286 and case closures totaled 750.

EP Voluntary Compliance

The FY 2017 EP Voluntary Compliance program case receipts were 4,183 and the case closures totaled 3,169.

EP Technical

The report noted that EP Technical produced 12 Issue Snapshots job aids that provide analysis and resources for a given technical tax issue to be used by employees while working cases.

Source: Tax Exempt and Government Entities FY 2017 Accomplishments
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