According to a recent article in The Kiplinger Tax Letter, IRS audits of retirement plans of large employers ($10 Million and 2,500 participants) should place more focus on their internal controls.  According to Kiplinger, in the event of an IRS audit, the audit team will start with the Plan’s internal controls, focusing on the employer’s HR and benefits staff and the electronic records system.  When fewer flaws are found in the Plan’s internal controls, it will be less likely the IRs auditors will need to expand their audit.

Have you recently reviewed your Plan’s internal controls?