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Explanations for the Top Ten Tips to Prepare for an Efficient Audit - Be Prepared to Provide Information About Related Employers/Entities

In order to determine what entities are involved in the examination, the interview is the best place to start. Whether there are relationships between separate business entities (such as members of a controlled group, affiliated service group or separate lines of business) are important to the examination of issues such as eligibility, coverage and allocations. Below are typical interview questions to be asked during the initial interview with the plan sponsor, representative, or other appropriate person:

  1. What is the taxpayer’s business?
  2. How does the business operate?
  3. Do owners of the business have ownership interests in other businesses such as corporations, partnerships or proprietorships?
  4. Do owners of the business have earned income from other businesses?
  5. Does this business have a parent company or any subsidiary companies?
  6. Which of these other businesses have employees?
  7. Which of these other businesses have employees participating in the plan?
  8. What other plans are maintained by the related businesses?
Page Last Reviewed or Updated: 13-Mar-2014