Top Preparation Tips Handle an IRS Benefit Audit

ARTICLE | July 10, 2024

Authored by Vasquez + Company


Receiving an IRS audit notice for an employee benefit plan can be alarming for any employer. However, understanding the audit process and being well-prepared can ease the experience. The IRS Director of Employer Plan Examinations offers guidance and a list of tips to navigate the audit smoothly. Employers should expect the audit to occur at their principal place of business and should thoroughly review the audit notice with their tax and benefit advisors beforehand. Federal law mandates annual audits for employee benefit plans with 100 or more participants, ensuring financial integrity and proper reporting.

Key Points

  • Audit Location: Audits are typically conducted at the employer's main office.
  • Preparation: Employers must organize and have ready all relevant documents and ensure key personnel are available.
  • Compliance: Regular independent audits help ensure compliance and prevent issues during IRS audits.
  • Top Tips: The IRS provides a "Top Ten Tips" list to help employers prepare efficiently.

For more information, read the full article here.