Purpose: IRM 4.71.6, Employee Plans Examination of Returns, Employee Plans Referrals, provides the basic examination procedures that will enable Employee Plans (EP) agents and their managers to:

Audience: This IRM provides procedures for agents, managers, and support staff in EP Examinations.

Program Owner: Director, EP Examinations.

Program Authority: EP Examinations derives its authority to conduct examinations, resolve issues and determine tax liability from Title 26, Internal Revenue Code, Subtitle F – Procedure and Administration, which includes but is not limited to:

The IRS is fully committed to protecting the privacy rights of taxpayers and employees. Privacy laws are included in the IRC, the Privacy Act of 1974, the Freedom of Information Act, and IRS policies and practices. For more information about these laws, visit the IRS Electronic Freedom of Information Act Reading Room. For questions concerning privacy, send an email to *Privacy. For question concerning disclosure, send an email to *Disclosure.

This IRM is authored by EP Mandatory Review. For questions, information or suggestions, contact the manager of EP Mandatory Review.

When a group receives a referral, the manager should immediately assign the case.

The agent responsible for the case will contact the EFU agent, EP Determinations specialist, EO agent, GE agent, FSLG agent, ITG agent or EBSA investigator within 30 workdays of the group's receipt of Form 4632 (with checksheet 4632-A, 4632-B, or 4632-C, as applicable), Form 5346, Form 5666 or Form 6212-A if the related case is being held open in the EFU or in EBSA.

If a related examination is open in EO, GE, FSLG, EBSA, or an EFU, or determination is open in EP Determinations, make every attempt to resolve every issue within 90 days of your group’s referral receipt. If the case is not closed within 90 days, the EP group manager should contact the referring group manager to update them on the status of the examination.

Agent: Once you resolve the referral:

Occasionally EP groups receive referrals directly from:

The group should email referrals to the TE/GE Referrals group in Classification at the email address in paragraph (1) of IRM 4.71.6.1.6, Overview of Employee Plans Referrals.

If the referring entity doesn’t prepare a referral form, the receiving group should prepare the applicable referral form and send it to Classification.

If your group decides to examine a return based on a referral received directly from an entity or individual, note the decision to examine on the referral form when you send to Classification.

Don’t begin any compliance activity for a referral unless you receive it from Classification or Classification approves the decision to examine.

Complete and submit Form 5666 to your group manager for approval for referrals you make to other EP groups. Fully explain the issue(s) and specify the related Code section(s).

Make sure the group manager signs item M on Form 5666. See IRM 4.71.6 Exhibit 1 at IRM 4.71 - Employee Plans Examination Exhibits for an example of a completed Form 5666.

The group manager (or designee) emails or mails the approved Form 5666 referrals to Classification. IRM 4.71.6.1.5, Contact Information for Business Units and Sub-functions, for contact information.

When you or your manager become aware of a practitioner who may be promoting an abusive transaction, refer the transaction to the LDC on Form 14242. See IRM 4.71.6 Exhibit 5 at IRM 4.71 - Employee Plans Examination Exhibits for an example of Form 14242.

Send completed LDC Referral Forms through encrypted email or regular mail to the LDC.

CP&C maintains the Compliance Issue Submission Portal for use when you discover a potential emerging issue.

Notify the TEGE Fraud Specialist anytime you:

Refer income tax issues not within the scope of Form 1040/1120 Discrepancy Adjustments to an EFU on Form 5666. See IRM 4.71.6 Exhibit 1 at IRM 4.71 - Employee Plans Examination Exhibits for an example of a completed Form 5666.

Prepare Form 5666 and include:

Refer income tax issues on Forms 1041 resulting from a proposed plan revocation or disqualification to an EFU on Form 5666.

Prepare Form 6229 if it’s urgent that SB/SE or LB&I conduct a coordinated examination of a related Form 1120, Form 1065 or Form 1040. See IRM 4.71.6 Exhibit 6 at IRM 4.71 - Employee Plans Examination Exhibits for an example of a completed Form 6229.

Email Form 5666 and Form 6229 to TE/GE Referrals Group at the address listed in paragraph (1) of IRM 4.71.6.1.5, Contact Information for Business Units and Sub-functions, unless you are working directly with another agent in the EFU. If you are working directly with the EFU, send the referral directly to the EFU and a copy to Classification.

Save a copy of the Form 5666 or Form 6229 in the RCCMS Office Documents folder using the RCCMS Naming Convention.

After making the referral, keep the case open until you receive feedback from the EFU or 20 workdays, then close the case.

Complete Form 6212-B for all full scope and focused EP examinations involving plans under DOL jurisdiction when a referral is required. See IRM 4.71.6 Exhibit 2 at IRM 4.71 - Employee Plans Examination Exhibits for an example of a completed Form 6212-B.

For full scope or focused EP examinations which include trust assets as an identified issue, complete the Form 6212-B based on your:

For focused EP examinations that don’t include trust assets as an identified issue, complete the Form 6212-B based on your:

Make a referral to EBSA when a question on Form 6212-B is answered in the right hand column or when you’re proposing plan revocation/non-qualification.

When you make a referral to EBSA, email these items to the FAC/EP DOL Coordinator at the address listed in paragraph (1) of IRM 4.71.6.1.5, Contact Information for Business Units and Sub-functions.

Select the "DOL Participation Requested" block on Form 6212-B only when DOL-EBSA’s joint participation is needed and for all unagreed cases involving IRC 4971 or IRC 4975 excise tax.

Hold any examination for which Form 6212-B is referred open until you receive a response or 30 days from the date sent to Classification, if earlier.

Save a copy of the Form 6212-B in the RCCMS Office Documents folder using the RCCMS Naming Convention.

Document the CCR whether IRS made a referral to EBSA.

IRS will delay action in a case when, as a result of a referral of a checksheet between the agencies, the EBSA Regional Office advises the Manager, Classification, in writing that the EBSA Regional Office referred the case to the DOL National Office.

Complete Form 6533 for all EP examinations of plans that are subject to PBGC when a referral is required to be made per Form 6533. See IRM 4.71.6 Exhibit 3 at IRM 4.71 - Employee Plans Examination Exhibits for an example of a completed Form 6533.

Most defined benefit pension plans are covered by PBGC insurance. ERISA section 4021(b) lists plans that aren’t covered. Defined benefit plans not covered include:

When you determine a referral to the PBGC is warranted per Form 6533, send the referral to:

Email a copy of the Form 6533 to the TE/GE Referrals Group at the address listed in paragraph (1) of IRM 4.71.6.1.5, Contact Information for Business Units and Sub-functions, with a note stating when you sent the original referral to PBGC.

You don’t have to hold the case for any length of time after you make a referral.

Save a copy of Form 6533 in the RCCMS Office Documents folder using the RCCMS Naming Convention.

You must make a referral to Art Appraisal Services when a return includes art or cultural property valued at $50,000 or more. Refer as soon as possible during your examination but no later than 30 days after you identify the issue.

Make a referral to Art Appraisal Services through the Specialist Referral System (SRS). See IRM 4.71.6.10, EP Group Procedures – Specialist Referral System (SRS).

You may, at your discretion, also request help in valuing items of art valued under $50,000. Refer to IRM 4.48.2.2, Criteria for Requesting Art Appraisal Services Assistance, for information on obtaining values on items valued at less than $50,000.

Use the SRS to request specialized assistance on EP examinations.

Through SRS, agents can request help online at SRS home page. This automatically notifies the appropriate Specialist Manager (in LB&I, SBSE, W&I, CAS, EO, or GE).

Use the SRS to request help from:

See these links on the SRS home page:

When you determine that a pre-approved Master & Prototype or Volume Submitter plan has erroneous language, don’t request an amendment; accept the language as previously approved.

Make a referral to the Pre-Approved Plan Coordinator. See IRM 4.71.6 Exhibit 4 at IRM 4.71 - Employee Plans Examination Exhibits for an example of the Pre-Approved Plan Referral Form.

Submit these items with the referral:

Mail the referral to: