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Employee Plans Compliance Unit (EPCU) - Current Projects - Funding Deficiencies

Why did I receive an EPCU Compliance Check Letter?

When a funding deficiency is reported on a filed return, the EPCU will determine whether a funding deficiency exists. If it appears one does exist, we send a compliance check letter and 886-A (DC plans) or letter and 886-A (DB plans). We will determine whether the funding deficiency was corrected, the required excise tax return(s) were filed and appropriate taxes paid.

What is the EPCU attempting to determine?

The EPCU Funding Deficiencies Project is focused on Forms 5500/5500EZ/5500SF reporting funding deficiencies on Schedules B, MB, SB, R, Form 5500EZ - line 11-d, or Form 5500-SF - line 12-d, of the return. Compliance checks are conducted to determine whether:

  • The funding deficiency has been corrected or if not why.
  • The applicable Forms 5330 reporting excise tax under IRC §4971 have been filed.
  • The sponsor has filed for a funding waiver, termination, PBGC distress termination, or bankruptcy.

What actions do I need to take?

Please provide the information requested in the Form 886-A attached to your letter. If you are required to file a Form 5330, this should be sent to the address shown at the top of the letter.

You may furnish other documents or clarifying material that you believe will be helpful for us to review. You should make every effort to answer the questions as accurately as possible. Failure to provide this information could result in further action or examination of your plan.

If you need additional time, please contact the person whose name is listed on the cover letter to request an extension prior to the response due date.

If You Have Questions

Please feel free to contact person listed in the cover letter with questions about this project and how it relates to your situation. You may make contact by phone, mail or email; however our responses will only be made by mail and telephone.


The content of this project is the result of collaboration between the Treasury Inspector General’s office and Examinations areas within Employee Plans of Tax Exempt and Government Entity (TE/GE). EPCU will mail the compliance contact letter and information request to plans identified as reporting a funding deficiency amount. The information request includes a Form 886-A. If the sponsoring organization appears compliant, the contact will be resolved, and we will issue a closing letter notifying the sponsoring organization. Failure to provide this information, fully fund your plan, or file necessary Form 5330 returns reporting an applicable excise tax, could result in further action or examination of your plan.

The information gathered from this project will result in a report issued by the IRS describing responses and identifying areas where we need additional education, guidance, or outreach.

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Page Last Reviewed or Updated: 25-Nov-2013