IRS Employee Plans Compliance Unit (EPCU) and Compliance Checks

The EPCU works compliance checks and performs data analysis to focus on areas of potential non-compliance. A compliance check is not an IRS audit, although responses to a compliance check can result in an IRS retirement plan audit. A compliance check is generally initiated in the form of a questionnaire/checklist that the Sponsor needs to complete and submit. Failure to complete and timely submit the checklist can trigger an IRS audit:  

• Taxpayers are initially contacted by correspondence, but EPCU may follow up with additional letters and/or telephone calls.
• Most issues are resolved without an on-site examination of the books and records of the plan, saving time and money for both the taxpayer and the IRS.   
• To date, the EPCU has completed 87 projects/strategies and conducted over 53,000 compliance checks.

For additional information on EPCU compliance checks, see EPCU – General FAQs.