Employee Plans Compliance Unit (EPCU) - Completed Projects- Projects with Summary Reports - Form 1099R-72(t) Project
The Employee Plans Compliance Unit (EPCU) designed the Form 1099-R - 72(t) Project (Project) to evaluate compliance under the current Form 1099-R reporting regimen by determining whether individuals complied by reporting taxable distributions and the 10% additional tax imposed by IRC Section 72(t) on their individual income tax returns.
The information obtained from this Project helps the IRS have a better understanding of the qualified plan sector and assists with development of tools, guidance and enforcement efforts.
The majority of cases presented a valid exception to the 10% additional tax on early distributions or had timely rolled over the distribution. However, a substantial number of cases improperly noted an “Other” exception to the 10% additional tax based on financial hardship alone resulting in amended return filings or referrals for additional review.
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