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Employee Plans Compliance Unit (EPCU) - Current Projects - International Project - Foreign Distributions - Frequently Asked Questions

These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information responsive to general inquiries. Due to the uniqueness and complexities of Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided. More information on Federal taxation can be obtained directly on our website, www.irs.gov.

  1. Why is there a need for this project?
  2. Why have I been selected for a compliance contact?
  3. What will be the focus of the information request?

 


Why is there a need for this project?

International and U.S. territory non-compliance is a significant area of concern and focus for the Service. Currently, there is no specific data to indicate what portion of the tax gap is attributable to international and U.S. territory individuals. The Employee Plans Compliance Unit (EPCU) has been charged with verifying compliance with international implications.  A compliance check is not an audit or investigation under section 7605(b) of the IRC or an audit under section 530 of the Revenue Act of 1978.
 

 


Why have I been selected for a compliance contact?

You were randomly selected for a compliance check because you received a distribution from a pension plan or individual retirement account (IRA) and the distribution address was located outside the U.S. or in a U.S. territory.  

 


What will be the focus of the information request?

You will be asked for information to determine that you properly reported receipt of the distribution reflected on the Form1099-R and paid the correct tax. You may also be asked for information concerning some items you reported on the Form 5329 regarding the distribution and to determine your compliance with annual filings, such as the Form 1040 or Form 1040-NR. In addition to the information described in the request, you may also furnish any other documents or materials that you believe will be helpful for us to review.

Page Last Reviewed or Updated: 18-Mar-2014