Tax-Exempt & Government Entities (TE/GE): In-Process compliance strategies

This strategy examines loans to officers, directors, and DPs that improperly use charitable assets to provide impermissible private benefit or inurement, also known as an excess benefit transaction (EBT).

Workstream: Examination 

The objective of this strategy is to examine exempt organizations listing highly compensated employees (individuals paid more than $1,000,000) on their Form 990 and filing Forms 4720 but not paying the required excise tax on this compensation.

Workstreams: Examination, Compliance Check, and Educational Letter (Letter 6194)

This strategy seeks to ensure that exempt organizations identified as supporting athletes using their NIL for compensation, disclosed these activities in their application for exempt status and that these NIL compensation activities are in full compliance with existing legal requirements under IRC Section 501(a).

Workstream: Examination 

This strategy reviews hospitals’ compliance with the Community Benefit Standard as outlined in the Affordable Care Act.

Workstreams: Examination and Educational Letter 

This strategy addresses possible issues with trust investments in small plans. Potential issues include failures to value trust investments at fair market value, required minimum distribution issues, funding deficiencies, and delinquent excise taxes.

Workstream: Examination

This strategy addresses possible issues such as universal availability, discrimination, and employer allocation failures in 403(b) and 457(b) plans.

Workstreams: Examination, Practitioner Outreach, and Regulation – Guidance

This strategy addresses potential issues in SARSEP IRA plans such as failures relating to forms, the average deferral percentage test, top heavy discrimination, contributions exceeding the limitations, and other rules for these plans.

Workstream: Examination 

This strategy addresses terminated cash balance plans that have high asset to participant ratios, which could result in potential IRC 415 violations or possible asset reversions.

Workstream: Examination

This strategy seeks to ensure employers are meeting required minimum distributions requirements outlined in IRC Section 401(a)(9).

Workstream: Examination

This strategy is reviewing leveraged, non-leveraged, and terminated ESOPs that engage in exempt loans and/or hold non-publicly traded stock. Issues of concern include prohibited transactions, proper allocations, distribution amounts, and failure to obtain independent appraisal.

Workstream: Examination

This strategy addresses plan sponsors that maintain both a defined benefit plan not covered by Pension Benefit Guaranty Corporation (PBGC) and a defined contribution plan where employer contributions were made to both plans.

Workstream: Examination 

This strategy addresses possible issues with RMDs in single participant plans.

Workstream: Examination

This strategy addresses possible issues with IRC Section 412(e)(3) plans. Potential issues include IRC 412(e)(3) requirements, definitely determinable benefits, non-discrimination, eligibility, coverage, IRC 415 limits, accrued benefits, and potential taxation issues.

Workstream: Examination

This strategy follows up on compliance statements issued to plan sponsors under the EP Voluntary Compliance Program (VCP) to verify that the specific corrections and administrative changes were implemented within 150-days of the date of the compliance statement.

Workstream: Compliance Check 

This strategy addresses plan sponsors that filed a Form 5500 series return marked as the “final return/report” still showing plan assets at the end of the plan year.

Workstream: Compliance Check

This strategy addresses possible issues with internal controls and trust assets in small 401(k) plans sponsored by tax-exempt organizations.

Workstream: Examination

This strategy identifies and resolves errors on returns showing a discrepancy in the BOY asset dollar amount when compared to the prior year EOY asset dollar amount.

Workstream: Compliance Check 

This strategy addresses follow-up examinations for cases resolved using a closing agreement to ensure correction has been maintained and conditions of the closing agreement remain intact.

Workstream: Examination 

This strategy seeks to ensure multiemployer plan sponsors operating under a pre‐approved document and participating in the VCP bring their plan documents into compliance and increase accuracy of Form 5500 reporting for multi-employer plans.

Workstreams: Examination and Educational Letter (Letter 6194)

This strategy addresses defined contribution and defined benefit plans sponsored by self-employed individuals. Potential issues include self-employed earned income calculation errors, IRC 415 limit violations, employer allocation, and accrual and deduction issues.

Workstream: Examination 

This strategy addresses possible issues with one-participant 401k plans such as eligibility/coverage, limits, deductions, plan assets, and testing.

Workstream: Examination

This strategy addresses potential worker classification issues where taxpayers treated workers who should be treated as employees as independent contractors.

Workstream: Examination

This strategy addresses Tax-Exempt/Government Entities (TE/GE) taxpayers with credit balances for federal tax deposits for employment tax returns (Forms 940, 941, 943, 944, 945, and 1042) but no record of employment tax returns filed.

Workstreams: Examination and Compliance Check

The primary objective of this strategy is to ensure that entities comply with their employment tax responsibilities by reviewing unusually large Form 941, line 7, fractions of cents adjustments.

Workstreams: Examination and Compliance Check

The primary objective of this strategy is to ensure FSL entities comply with their employment tax responsibilities through verification of accuracy of Forms W-2 reporting no SS wages/taxes and no check within Box 13, and to further identify whether any of the employees meeting strategy criteria are rehired annuitants.

Workstream: Examination

This strategy concerns potential arbitrage violations pertaining to the fair market value requirements for yield restricted defeasance escrows.

Workstream: Examination

This strategy concerns potential violations pertaining to arbitrage rebate requirements.

Workstream: Examination 

This compliance strategy concerns potential violations resulting from the failure to expend certain proceeds of the issue within three years of bond issuance and subsequent failure to redeem non-qualified bonds within 90 days thereafter.

Workstream: Compliance Check

This strategy concerns potential arbitrage violations resulting from the investment of bond proceeds in higher yielding investments beyond the allowable temporary period.

Workstream: Examination 

This strategy focuses on specific requirements that must be met to meet the definition of a qualified small issue bond.

Workstream: Examination

This strategy concerns potential arbitrage violations pertaining to yield restriction requirements and yield reduction payments for certain investments of bond proceeds

Workstream: Examination 

This strategy focuses on ensuring compliance among tax-exempt bonds issued by Indian and tribal governments (“tribes”), known as Tribal Economic Development (TED) Bonds.

Workstream: Examination 

This strategy verifies that residential rental projects annually certify their income requirements using Form 8703.

Workstreams: Examination and Compliance Check

The primary issue for this strategy relates to the payment of a penalty in lieu of arbitrage rebate.

Workstream: Examination