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Employee Plans Compliance Unit (EPCU) - Featured Project - 401(k) Compliance Check Questionnaire Project - Frequently Asked Questions

What is the 401(k) Compliance Check Questionnaire Project?

The 401(k) Compliance Check Questionnaire Project is a project administered by the Employee Plans Compliance Unit (EPCU) designed to be a comprehensive look into 401(k) plans to determine potential compliance issues, gain a better understanding of the reasons for noncompliance and determine any potential plan operational issues. It will also assist us in developing education and outreach materials to improve future compliance and to help us determine where to focus our enforcement efforts.

How will I know that my plan was selected?

Plans selected to receive the compliance check will receive a letter from the EPCU containing instructions for completion of the Questionnaire.

Why was my plan selected?

The 1,200 plans selected to receive this compliance check were selected at random from 401(k) plans that filed a Form 5500 for the 2007 plan year.

Is this an audit?

This is a compliance check, which is neither an audit nor an investigation under Code §7605(b), nor an audit under section 530 of the Revenue Act of 1978. This is not a review of an organization’s books and records.

What is a compliance check?

A compliance check is a review by the IRS to determine adherence to certain compliance requirements under the Internal Revenue Code.

Am I required to respond to this compliance check?

Yes, a compliance check is an enforcement action to which you must respond. Failure to respond, or to provide complete information will result in further enforcement actions that may include an examination of your plan.

What if I am unable to respond online?

If you are physically unable to respond online, contact the person listed on the letter you received.

What if I can’t access the online Questionnaire?

If you cannot access the Questionnaire online, contact the person listed on the letter you received.

Can someone complete the Questionnaire for me?

Yes, someone else can complete the Questionnaire for you if you provide him or her with the information to access it. However, if you would like someone else to communicate with the IRS about the Questionnaire, you must submit Form 2848, Power of Attorney and Declaration of Representative.

What should I do if I get an error message when I try to access the Questionnaire?

Please verify the accuracy of the PIN, Password and Source ID you entered. For example, it is possible the letter “I” was mistaken for the number “1.” If this does not resolve the problem, contact the person listed on the letter you received.

The letter references the 2007 plan year, but the instructions request 2008 plan year information.

Please use data as of the end of the 2008 plan year unless the question specifically lists the 2006, 2007 and 2008 years. In this instance, answer the question by providing data for all years listed.

I discovered a qualification failure when completing the Questionnaire. What should I do?

Plan sponsors may either self-correct or submit an application under the Voluntary Correction Program. Please refer to Rev. Proc. 2008-50 on our Correcting Plan Errors page.

Page Last Reviewed or Updated: 2012-08-03